Tata Sons has commenced work on the merger of low- fare airline Air Asia India with Air India’s budget carrier Air India Express said top executives close to the development. As the Tata group takes over Air India, it’s looking to achieve synergies and cut operational costs.
While Tata owning 84% stake in Air Asia India, this first step in creating a single airline entity can be taken in a relatively short span of time, they said. Tata is yet to conclude talks with Singapore Airlines (SIA) on integrating the schedules of Vistara and Air India the people said. Tata owns 51% of Vistara and SIA holds the rest.
Tata Sons has held several meetings in recent weeks with the senior management of Air Asia India and Air India to discuss the integration of staff and aircraft quality and safety checks among other matters.