The Tata group is evaluating options to consolidate AirAsia India and Vistara under Air India to bring operational synergies among the three airlines, sources said.
Air India has set up a team under its director of operations, R.S. Sandhu, sources said.
“Air India CEO and MD Campbell Wilson has set up this team, which will look into the synergy between Air India Express and AirAsia India and also between Air India and Vistara and how to achieve the merger,” a source said.
The team has been asked to submit its plan within one year, the source added.
It is understood that the plan is to achieve consolidation of AirAsia India into Air India Express over a one-year period, while also targeting to bring all of the group’s airline businesses under the Air India umbrella by 2024.
An e-mailed query to Tata Sons seeking comments remained unanswered.
Tata Group took back control of Air India and its lowcost international arm, Air India Express, from the government in January this year.
The group holds a majority 83.67 per cent stake in domestic budget carrier AirAsia India, which started flying in June 2014, while the remaining 16.33 per cent is with the Malaysian airliners group AirAsia.
The group is looking to acquire the remaining stake in AirAsia India from AirAsia Group.
SpiceJet capacity
The DGCA on Wednesday asked the budget carrier SpiceJet to continue operating at 50 per cent capacity tillOctober 29. It said the restrictions have been extended as a matter of “abundant caution.”
The Directorate General of Civil Aviation (DGCA) had on July 27 ordered SpiceJetto operate a maximum of 50per cent of its flights, which were approved in the summer schedule for a period of eight weeks owing to a series of incidents involving its flights.
“The review has indicated that there is an appreciable reduction in the number of safety incidents. However, as a matter of abundant caution, the competent authority has decided that the restrictions as imposed in the order dated July 27 that continue to be in force till the end of the summer schedule(which ends October 29),” the DGCA said in its order.
Any increase beyond 50per cent will be subject to the airline “demonstrating that it has sufficient technical support and financial resources to safely undertake such enhanced capacity”, the order stated.
