: Air India plans to raise 30% share in domestic market #finance #StockMarketNEWS #Business Buzz of possibility of its merger with Vistara New Delhi: Amid the ambitious plan of the Tata owned Air

Posted in: #finance #StockMarketNEWS #Business

Air India plans to raise 30% share in domestic market #finance #StockMarketNEWS #Business
Buzz of possibility of its merger with Vistara

New Delhi: Amid the ambitious plan of the Tata owned Air India to raise its market share substantially to at least 30% in the domestic market, there is a buzz within the aviation industry on the possibility of its merger with Vistara, a joint venture between Tata Sons and

Singapore Airlines.

On September 15, Air India unveiled its comprehensive transformation plan, to establish itself, once again, as a world-class global airline. It said that over the next five years, it will strive to increase its market share to at least 30% in the domestic market while significantly growing the international routes from the present market share. The plan is aimed at putting Air India on a path to sustained growth, profitability and

market leadership.

Air India clocked a market share of 8. 5% in August while carrying 8. 61 lakh passengers. On the other hand, Vistara has maintained its second position in terms of the market share during the last two months July (10. 4%) and

August (9. 7%).

Apart from this, Air India has talked about its fleet expansion plan by introducing five widebody and 25 narrowbody aircraft. The airline has also said about getting back its grounded aircraft in service.

On the other side, Vistara has 55 aircraft and the number will increase to 60 in the upcoming months. In the winter schedule starting from October end, Vistara will add more flights to Europe as it has planned increasing capacity to Frankfurt and Paris.

When asked about the possibility of a merger, an industry insider said that there was speculation about the merger particularly after Air India’s announcement of the transformation plan. There will be clarity on this only in the coming months. The ambitions of Air India to have 30% market share from the current existing market share of 8. 5% gives enough support to the buzz of a merger with Vistara,�? he said.

When contacted, both the airlines refused to comment on the possibility of merger.

Moreover, the Competition Commission of India approved Air India’s proposed acquisition of Tata group’s entire 83. 67% stake in Air Asia India. The approval gives a boost to the group’s plans of merging the two airlines.

Currently, the Tata Group operates four airlines Air India, Air India Express, AirAsia India and Vistara. Air India and Vistara operate on both domestic and international routes. While AirAsia flies on only domestic routes, the Air India Express operates only on the international routes.

Air India and AirAsia have a combined market share of 13% in India. The group already planned to merge AirAsia India with Air India Express.