1. Aloke Singh appointed head of Air India's low cost airline business
Tags: National Economy/Finance Person in news
Tata Group has appointed Aloke Singh as the chief of its low cost airline business from 1 January 2023. The Low Cost Carrier business will comprise AirAsia India and Air India Express.
Currently the Tata group operates four air lines. They are Air India, Air India Express, AirAsia India and Vistara. Vistara is a joint venture of Tata with Singapore Airlines.
On 29 November 2022, Tata group announced the merger of Vistara with Air India under a deal wherein Singapore Airlines will also acquire a 25.1 per cent stake in Air India. The deal, which will make Air India the country's largest international carrier and second-largest domestic airline, is expected to be completed by March 2024, subject to regulatory approvals.
The Tata group intends to merge budget carrier AirAsia India with Air India Express and the merger is likely to be completed by the end of 2023.
After Merger the company will be called Air India Express.
AirAsia India was launched in 2014 while Air India Express started operations back in 2005.
Low cost airlines or budget airlines or no-frill airlines do not provide traditional services like food, drinks or other premium services and their fares are also usually low. Some of the major low cost airlines operating in India are Go Air, Indigo, Air India Express, and Spice Jet.
Air India Managing Director and Chief Executive Officer: Campbell Wilson
2. Vistara to merge with Air India by 2024
Tags: Economy/Finance
The Tata Sons Company has announced on 29 November 2022 that Vistara Airlines will be merged with Air India by March 2024. Earlier in the day the Singapore Airlines had made the same announcement. Tata sons is the owner of Air India.
Vistara Airlines is a joint venture of the Tata Sons and the Singapore Airlines which started its operation in 2015. Tata group owns a 51 percent stake in Vistara, and the remaining 49 percent shareholding is with Singapore Airlines (SIA).
After the merger of both the Airlines the Singapore Airlines stake in Air India will be25.1%.The Vistara brand will be scrapped and Singapore Airlines will also invest Rs 2058.50 crore in Air India. Similar amount will be invested by Tata’s in Air India.
The Tata group also plans to merge its Air India Express and AirAsia India with Air India by 2024.
Air India was founded by JRD Tata in 1932 which was nationalized by the Government in 1953. However, the government sold back the company back to Tata Group for Rs 18,000 cores and handed the management of Air India to the Tata’s in January 2022.
Air India will become the largest international carrier of India and second largest domestic airline when the merger is completed .InterGlobe Aviation Ltd. with the brand name IndiGo is the largest domestic airline in the country.
Air India Managing Director and Chief Executive Officer: Campbell Wilson
Headquarters of Air India: New Delhi
