Vistara-Air India Merger Is On The Cards, Says Singapore Airlines

Singapore Airlines Ltd. has said it is in talks with the Tata Group to deepen partnership, which may include a "potential integration" of Vistara and Air India.

The airline is in "confidential discussions" with the Mumbai-based conglomerate, and the talks are in line with its "multi-hub strategy", it said in filing on the Singapore Exchange or SGX.

"The discussions are ongoing and no definitive terms have been agreed upon between the parties...Even if a transaction were to materialize, it would be subject to the relevant regulatory approvals, amongst other matters," it said.

Singapore Airlines holds a 49% equity interest in Vistara, and the balance 51% is held by the Tata Group.

Recently, with as many as four airlines—Vistara, Air India, Air Asia, and Air India Express—coming under Tata's partial or full ownership, talks surrounding consolidation have been doing the rounds.