Singapore Airlines 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.
SIA said India had strong domestic and international traffic flows that were expected to double over the next 10 years, which compares to its more mature home market. SIA, which was focused on repairing its balance sheet, did not take part in the bidding process, but Mr Campbell Wilson, a former senior executive at the Singaporean carrier, started as Air India's new chief executive in July.
"SIA converting its stake in Vistara into a stake for the Tata-led airline group makes sense," said Mr 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."