Singapore Airlines will inject another SGD 360 million (US$267 million) into Air India. This will give SIA a 25.1% stake in the group following its acquisition by Tata and merger with Vistara Airlines. The airline said that through this transaction, SIA will strengthen its partnership with Tata and immediately acquire a strategic stake in an entity four to five times larger in scale than Vistara.
Last year, both the Tatas and Singapore Airlines agreed to inject fresh capital if needed to help lift Air India Back to the highs of decades when the airline had a dazzling heyday.
singapore aviation According to Bloomberg news agency, a quarter will be part of a unit that will have 218 aircraft, and access to lucrative landing and parking slots around the world.
The airline had said the new entity would be four to five times bigger than Vistara and help strengthen its multi-hub strategy. Vistara, a full-service carrier, operates flights to 12 international destinations including London, Frankfurt, Paris, Abu Dhabi and Dubai.
Tata and singapore aviation It has a long history, including an ambitious project in 1994 to start an airline with 100 aircraft, but the government refused to allow a foreign entry and the idea was abandoned. The two again bid for a stake in Air India in 2000 when the government sought to sell shares in the carrier. That plan was later abandoned due to political opposition.
According to ANI news agency, in November 2022, there is a deal between Singapore Airlines and Tata Sons Investing another $267 million in Air India is one of its key strategic initiatives Future Growth mentioned in the quarterly financial report.
According to SIA’s statement, the merged entity will be four to five times larger than Vistara, which will have a strong presence across all major airline sectors in India.
“The proposed merger will strengthen SIA’s presence in India, strengthen its multi-hub strategy, and allow it to participate directly in this large and fast-growing aviation market,” the airline said.
Singapore Airlines Limited (SIA) jumped more than seven times in the third quarter Net profit last week. The airline’s net profit rose to S$628 million ($469 million) for the three months ended 31 December from S$85 million a year earlier.
Overall, SIA’s revenue increased SGD 358 million ($265 million) in the three months to December, up 8% quarter-on-quarter to SGD 4,846 million ($3,589 million), a record.
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