Singapore airlines declined jointly bidding option with Tata for Air India

Published on : Tuesday, February 2, 2021

Singapore Airlines opined that they will not join Tata Group for bidding Air India. The two are currently in a joint-venture agreement in full-service airline Vistara. While, Singapore Airlines has waived the non-compete clause in Vistara’s contract, allowing Tata to bid for Air India alone.

According to the Times of India, Singapore Airlines (SIA) stated that they do not have any plans to indulge into jointly bidding with Tata for Air India. This flag carrier has suffered immensely owing to Covid-19 outbreak, leading to billions in losses and cutting jobs. At such a time, spending billions on investing in Air India does not seem practical.

While the waiver will undoubtedly be a relief for Tata but does open up several questions about the future, according to Hindustan Times, sources say the group is considering merging subsidiary airlines. This could mean merging Vistara and AirAsia India or Air India and AirAsia India. Alternatively, all three carriers could be merged to form one airline.

However, any merger will require another approval from Singapore Airlines and it remains unclear if it is open to the idea. If all three airlines were to merge, SIA could end up with a minority stake in the new airline or could decide to pull out and sell its stake to Tata.

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