The Tata Group has reportedly started negotiations with Singapore Airlines (SIA), its joint venture partner in Vistara, to abandon a non-compete clause and join it in a proposed bid for the debt-laden Air India. The bid will be through Vistara, which is a full-service airline. It is worth mentioning here that his year, the Centre has had to postpone bidding for Air India four times in the wake of the coronavirus pandemic.
Tata Sons, the holding company of the $113 billion (Rs 8.34 lakh crore) salt-to-software conglomerate has decided to bid for the embattled national carrier, officials with knowledge of the matter told ET.
It is likely that SIA will give the green signal to the bid proposal. Further, the Tata Group is all set to bid solo for the ailing national carrier if the partner does not agree to the plans, the financial daily mentioned citing officials. Tata Sons would go ahead with the Air India bid irrespective of the outcome on the joint venture.
At present, the Mumbai-based conglomerate runs two airlines—full-fledged carrier Vistara (with SIA) and Air Asia India (with Air Asia Berhad)—and it is worth noting that Tata airlines business is not in good financial health.