Singapore Airlines (SIA) Ltd is in “confidential talks” with the Tata Group over the potential integration of Vistara, whose 49 per cent equity is held by SIA, and Air India to help the Singaporean carrier gain a stronger foothold in India and South Asia.
SIA in a statement further said that the talks were ongoing and no “definitive agreements” have been reached on the potential integration between the two parties.
The aviation company said that it will make the necessary announcements “when there are any material developments regarding the potential transaction in compliance with the relevant provisions of the Listing Manual of the Singapore Exchange Securities Trading Limited”.
SIA holds 49 per cent equity in Vistara while the balance 51 per cent equity is held by the Tata Group.
Vistara commenced operations in India on January 9, 2015, and has 50 flights running across the country.
Vistara fleet comprises Airbus A320, A320neo, A321neo, Boeing 737 and B787.
The discussions come at a time when Air India has been looking to rebuild its fleet and target a domestic market share of at least 30 per cent over the next five years.