The country’s grand old but ailing airline Air India has been resurrected by salt to metal behemoth Tata with a Rs 18,000 crore infusion this year. The carrier has a legacy linked with the conglomerate, which is known for creating products and brands that command consumer confidence. Now that Air Asia has also been acquired by Tata Group, the firm which operates Vistara as a joint venture with Singapore Airlines, is reportedly uniting four carriers under one banner.
Vistara to give way to Air India?
As per reports by Bloomberg, India’s second largest airline Vistara may lose its own independent brand identity, with Air India becoming Tata’s flagship carrier. The discussions are private and details, such as Singapore Airline’s stake in the new entity formed post amalgamation, need to be ironed out. The new brand will consist of Air Asia, AI Express, Air India and Vistara, all under Tata’s control now.
A massive fleet in the making
Vistara already has a fleet size of 54 aircraft, which will be added to 113 owned by Air India, as well as more than 23 from Air Asia and 24 from Kochi-based Air India Express. Beyond that, Air India is also planning to bring in 300 new carriers to boost its comeback, and it plans to triple the fleet size in five year. With an eye on aggressive expansion Tata Sons has also started raising $1 billion for Air India, as per reports.
Legacy over popularity?
Tata had to let go of Air India, which it had originally launched in the 1930s, because of nationalisation back in 1953. Although it acquired the debt-ridden airline under the government’s privatisation drive, Vistara has become a major brand for Tata, being the only Indian carrier in the world’s top 20. Scrapping the now popular Vistara for the legacy of Air India will be a major step for the conglomerate and its partner Singapore Airlines.
