To streamline operations whilst building a formidable airline company, Tata Sons has approached the Competition Commission of India (CCI) to merge its joint venture carrier Vistara with Air India.

The move is a part of the conglomerate’s strategy to have two airlines — merging Vistara and Air India to form a full-service carrier and a low-cost one by merging AirAsia India and Air India Express.

At present, Tata SIA Airlines (TSAL) better known as Vistara is a joint venture between Tata Sons (TSPL) and Singapore Airlines (SIA). Tata Sons hold a 51% stake in Vistara while the rest is with SIA. On the other hand, Air India is a fully-owned arm of TSPL. It was taken over by the Tatas from the central government in 2022.

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A notice to the CCI said that post merger, Tata Sons will hold at least 51% of the total issued and paid-up equity share capital and will continue to retain control over AIL and its subsidiaries, whereas SIA will hold a “minority stake of 25.1%”.

The notice also mentions that the move will not lead to any change in the “competitive landscape or cause any appreciable adverse effect on competition in India, irrespective of the manner in which the relevant markets are defined”.

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However, the notice pointed out ‘horizontal overlaps’ in areas such as “market for domestic passenger air transport services in India; market for international passenger air transport services in India; market for provision of air cargo transport services in India; and market for provision of charter flight services in India”.

Besides, the notice cited ‘vertical relationships’ such as the upstream market for ground handling services at the Bengaluru, Delhi, Hyderabad and Thiruvananthapuram airports.

“The downstream market for passenger air transport services at Bengaluru, Delhi, Hyderabad and Thiruvananthapuram airports; and the upstream market for in-flight catering services in India; the downstream market for passenger air transport services in India.”