Vistara partner Singapore Airlines concerned over Tatas’ interest in Air India

[The_King]

Mumbai: Tatas' joint venture partner Singapore Airlines joint venture partner for Vistara, and Temasek, SIA's majority stakeholder, are believed to have voiced their unwillingness to Tata Sons about its probable bid for the national carrier Air India.

 

It is believed that top officials from both the partner organizations have raised their concerns personally to the Tata Sons chairperson N Chandrasekaran. "Temasek also has an investment in some Tata group firms and periodic evaluations are undertaken. It was during such a meet that the JV partner conveyed apprehensions," a group insider told ET. 

Earlier, Tata Sons had confirmed to the financial publication that it was evaluating a bid for Air India and would decide on the same after consideration.

 

 

Vistara's nod in Air India bid

Temasek and SIA's apprehensions stem from the non-compete agreement between the Singaporean carrier and the Tata group when they decided to come together to launch Vistara.

The agreement stipulates that Vistara has an exclusive right to undertake "full-service carrier" services within the overall Tata aviation offering.

A bid for Air India by Tata group on its own would violate this understanding unless SIA gives a waiver. A bid by Vistara would also require consent from SIA and Temasek, which owns 55% in SIA.

Currently, the debt-ridden airline is for sale as one company, including the real estate assets. The $110 billion Tata Group has hired top legal firms and consultants to do due diligence. More importantly, there is a buzz that the conglomerate is mulling to merge AirAsia India—Tata Sons holds 51 per cent stake—and Air India into a single company after buying out joint venture partner Tony Fernandes, the publication mentioned, citing officials close to the Tata Group.

 

 

Of the ailing national carrier's total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286.5 crore. The remaining amount would be transferred to Air India Assets Holding Ltd (AIAHL), a special purpose vehicle

 

 

https://www.timesnownews.com/business-economy/companies/article/vistara-partner-singapore-airlines-concerned-over-tatas-interest-in-air-india/658094

[The_King]

https://www.straitstimes.com/singapore/transport/sia-invests-over-100m-in-indian-carrier-vistara

 

 

 

same like airtel, this is why trump support nationalist.  All countries only care about their own. Kena own again. Muahahahahah

Edited September 27, 2020 by The_King