: Tatas plan to pilot synergy between airlines, post SPA #FinanceIndia #StockMarketNEWS #Business New Delhi: Conglomerate Tata Group plans to pilot synergy between all its airlines to compete in various
@StockMarketNEWS Tue 19 Oct, 2021
Tatas plan to pilot synergy between airlines, post SPA #FinanceIndia #StockMarketNEWS #Business
New Delhi: Conglomerate Tata Group plans to pilot synergy between all its airlines to compete in various market segments.
Post the SPA transaction, Tatas will have two full-service carriers Vistara and Air India along with two low-cost airlines Air India Express and AirAsia India and a ground and cargo handling company, AISATS.
Accordingly, plans are afoot to run all these brands as independent entities under one vertical for sometime after the SPA.
Nonetheless, the group intends to drive-in major synergies between the airlines in terms of fleet management, route deployment, flight timings and airport slot planning.
In terms of USPs, Vistara is expected to retain the premium services tag, while Air India will predominantly focus on key international and metro routes.
The domestic feeder traffic is expected to be driven by AirAsia India which may get few aircraft from Air India’s fleet.
Furthermore, mergers will depend on profitability, performance and market situation apart from each airline’s unique culture and suitability of brand.
Regarding the plans, a query sent to the Tata Group went unanswered.
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