TATA to discuss collaboration between AirAsia India-Air India

Malaysia – In a decision to merge two of the most popular airlines in India and businesses in the world–Air India and AirAsia India–TATA sons are coming with a full-fledged plan as to why it wants to combine the two.

It will be a one-of-a-kind merger, if it takes place, as it will bring low-fare airlines and Air India express. This is after the conglomerate bought Air India from the Indian government due to some financial hurdles.

As per a report of the economic times, the decision has been taken completely keeping the future endeavors in mind specifically aimed at cutting operational cost at both the times. The development was spoken about by an inside official to the leading daily. Even though it is a business call and many parties are involved, the decision will majorly be taken by the core group.

The group owns 84 percent of the stakes in AirAsia India, which means it will not be a complicated procedure if everything works at both ends. Another airline is in talks about the procedure but nothing has been finalized. Singapore Airlines was supposed to be integrated with Vistara and Air India but discussions about it are still going on.

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TATA has been coming across as a strong player in the airline business. The group currently owns a 51 percent stake in Vistara and SIA holds the rest. Experts have called this a futuristic move for the company as well as the nation.

An inside source stressed that it is indeed a logical move as Tata owns a majority stake in AirAsia India, making way for easier integration. This foretells the group’s plans to aim for a single airline entity, which many say that the conglomerate has been thinking about for a long time.

The information has only been revealed as an inside source and though experts have encouraged the development, the group has neither commented on the stakes nor did it have anything to say on the merger. Talance Private Limited, which is owned by the TATA group, was interested in owning 100 percent of the stakes of Air India and this process will reportedly be complete by end of this year.