SIA holds a 49% stake in Vistara, while Tata owns the remaining 51%. Tata assumed control of Air India at the start of 2022 and there has been speculation over how the Indian conglomerate will seek to reorganize its airline businesses, which now compromise Air India, Air India Express, Vistara and a majority stake in AirAsia India.
The Singaporean flag carrier described the discussions with Tata as confidential.
“The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India,” SIA said in a stock exchange statement on October 13, 2022.
SIA highlighted that talks are ongoing, and no definitive terms or agreement have yet been made. Any deal would also be subject to regulatory approval.
The establishment of Vistara in 2013 gave SIA a foothold into the India market and it said the country is an integral part of its multi-hub strategy, giving it sources of traffic to complement its Singapore base. SIA added that the Indian market is set for strong growth over the next 10 years, with traffic set to double.
Analysts have previously said that the Indian air travel market could be the growth story of the next decade, with room for new or expanded airlines.