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Singapore Airlines pursues Air India stake to expand market presence

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Singapore Airlines Ltd (SIA) said on Thursday it was in talks with India's Tata Group about a potential merger of Vistara, their joint venture airline, with Air India to give the Singaporean carrier a bigger foothold in South Asia.

Air India headed by former SIA executivesaid on Thursday it was in talks with India's Tata Group about a potential merger of Vistara, their joint venture airline, with Air India to give the Singaporean carrier a bigger foothold in South Asia.

Tata owns all of Air India after completing its purchase of the previously state-owned Indian national carrier in January. "SIA converting its stake in Vistara into a stake for the Tata-led airline group makes sense," said Brendan Sobie, an independent analyst based in Singapore. "The creation of this group will improve the position of all the Tata airlines and SIA's investment in the Indian market."

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