SIA to acquire 25.1% stake in Air India under deal with Tata

[Dracula]

SINGAPORE: Singapore Airlines Ltd (SIA) said on Tuesday (Nov 29) it would emerge as a 25.1 per cent owner of Air India as part of a deal that would merge its Vistara full-service airline joint venture with Tata Sons into India's national carrier.

SIA will invest S$360 million into Air India as part of the transaction, with both companies aiming to complete the merger by March 2024 subject to regulatory approvals.

SIA said it intends to fully fund this investment with its internal cash resources, which stood at S$17.5 billion as of Sep 30, 2022.

The merger would bolster its presence in India, strengthen its multi-hub strategy and allow it to continue participating directly in a large and fast-growing aviation market, the company added.

It would also result in a strategic stake in an entity that is four to five times larger in scale compared to Vistara.

SIA CEO Goh Choon Phong said: “Our collaboration (with Tata) to set up Vistara in 2013 resulted in a market-leading full-service carrier, which has won many global accolades in a short time.

“With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market.

"We will work together to support Air India’s transformation programme, unlock its significant potential, and restore it to its position as a leading airline on the global stage."

DEAL WILL MAKE FURTHER INROADS INTO INDIA MARKET​

India is currently the world’s third largest aviation market and demand for air travel is surging with passenger traffic expected to more than double over the next 10 years.

However, the country remains underserved with low international seats per capita, signifying significant growth potential.

With the integration, Air India will be the only Indian airline group to operate both full-service and low-cost passenger services, reinforcing its position as India’s largest international carrier and second largest domestic carrier.

SIA, along with Tata, is prepared to participate in additional capital injections, if required, to fund the growth and operations of the enlarged Air India in FY2022-23 and FY2023-24.

Its share of any additional capital injection could be up to S$880 million, payable only after the completion of the merger, the company said.

https://www.channelnewsasia.com/business/sia-singapore-airlines-air-india-vistara-merger-3109186

 

[blackmondy]

SIA = Smelly Indians Airlines.

 

[laksaboy]

More money flushed down the toilet. Sad!

 

[syed putra]

Great move. Make new Delhi or mumbai a hub to compete with emirates.

 

[Boliao]

SIA is confused whether it should be a premium airline or a cheepo airline. First was co-share with cheap airlines, dramatically bringing down the quality of its regular passengers, then allowing Scoot to fly some of it's international lines. SIA is gone. I've stopped flying with SQ for the longest time. Charging premium price but offering low quality service. A lot of regional airlines are much better than SIA.

 

[syed putra]

SIA is confused whether it should be a premium airline or a cheepo airline. First was co-share with cheap airlines, dramatically bringing down the quality of its regular passengers, then allowing Scoot to fly some of it's international lines. SIA is gone. I've stopped flying with SQ for the longest time. Charging premium price but offering low quality service. A lot of regional airlines are much better than SIA.

I think there was indication that low cost carriers were taking passengers from full service airlines. Qantas did the same thing.
Airlines that did not offer low cost alternatives in the region are currently unprofitable.

 

[red amoeba]

i fail to understand why SIA will trade 49% ownership of Vistara for 25% of Air India.
we all know Air India runs like shit and is deep financial troubles. India Air went down the path.

Investing in Tata and start Vistara is already a mistake. SIA obviously never learnt - Ansett, Virgin and now Vistara. This Air India 25% is another shithole. Transit from private owned to government (and wiping out all private shareholders' value) and back to Tata. SIA likes to be fucked by snakes don't they?

The staff are fucked, low bonus, low pay and the bosses throw money into shitholes like this.

 

[Pinkieslut]

Sounds like great news! Would love it if SIA LeePlaced the low SES Sinkies with high caste high SES Chiobu Desi!

 

[bobby]

 

[CPTMiller]

More money flushed down the toilet. Sad!

Are you joking? India economy or their people talents have big potential. Our leaders said that many times.

 

[eatshitndie]

sekali kena tax $6.9b per year for aviation license to own part of airline. if india can suka suka impose yearly license fees on mobile companies per subscriber, from 5k rupees to 6.9k rupees, and almost an increase of 1k rupees per sub every year, it can do anything to airlines. if mobile company has 100m subs, it has to pay 690b rupees in license fees every year. how to make money?
https://cis-india.org/telecom/resources/licensing-framework-for-telecom#:~:text=The licence fee was revised and the DoT,charge a maximum Rs. 156 only as rental.

 

[laksaboy]

Are you joking? India economy or their people talents have big potential. Our leaders said that many times.

Misleaders, not leaders.

 

[Boliao]

SIA already mass recruiting Indian pilots; in additional to Singapore mass recruiting Indian doctors and Indian lawyers. Looks like Vivian is telling the truth. PAP is turning Singapore into an Indian state.

 

[syed putra]

SIA already mass recruiting Indian pilots; in additional to Singapore mass recruiting Indian doctors and Indian lawyers. Looks like Vivian is telling the truth. PAP is turning Singapore into an Indian state.

The island has a indian name. PAP merely doing what is right. Malays can't be bothered if its chinese or induan dominated as either way, their only chance of getting employed is working for western companies or deliveries, or low ranking gomen staff

 

[syed putra]

sekali kena tax $6.9b per year for aviation license to own part of airline. if india can suka suka impose yearly license fees on mobile companies per subscriber, from 5k rupees to 6.9k rupees, and almost an increase of 1k rupees per sub every year, it can do anything to airlines. if mobile company has 100m subs, it has to pay 690b rupees in license fees every year. how to make money?
https://cis-india.org/telecom/resources/licensing-framework-for-telecom#:~:text=The licence fee was revised and the DoT,charge a maximum Rs. 156 only as rental.

They can also suka suka cancel your telco license if there is any hint of malpractice.

 

[syed putra]

Are you joking? India economy or their people talents have big potential. Our leaders said that many times.

And they are right. To get the best result, you must get chinese and indians to fight it out,

 

[birdie69]

More money flushed down the toilet. Sad!

The decision must be made by a CECA Indians to invest in India, similar to FTX, no due diligence carried out and made reckless investment.
Wait to see few hundred millions dollars down in the drain.
Fortunately, our reserves can afford the loss

 

[eatshitndie]

They can also suka suka cancel your telco license if there is any hint of malpractice.

even getting a banking license is full of shenanigans. any foreign business entity investing in india is subject to all kinds of protectionist shit.

 

[CPTMiller]

Misleaders, not leaders.

They're voted in by you or the majority citizens which make them your leaders

 

[borom]

This will not stop UNTIL there is a change of government -as the same people are in charge with no accountability.
I do not know how many of us will live to see that- that we will be a free society where even x Presidents or Prime Ministers can be sent to jail .
In this respect (political development) we are far behind countries like S Korea, Taiwan, Malaysia and even Pinoyland and becoming more and more like N Korea,Cambodia and Burma.