Singapore Airlines to receive 25.1% stake in enlarged Air India group

 deal between Singapore Airlines (SIA) and Tata Sons (Tata) will inject a furr SGD 360 million (USD 267 million) into Air India. It will provide Singapore Airlines with a 25.1% stake in enlarged Air India group following its takeover by Tata and merger with Vistara Airlines.

November 2022 deal between Singapore Airlines and Tata Sons to furr inject USD 267 million into Air India is one of key strategic initiatives for future growth mentioned in quarterly financial report. This agreement is still subject to regulatory approval.

SIA in its statement said, " merged entity will be four to five times larger in scale compared to Vistara and mark a strong presence in all key airline segments in India. proposed merger will bolster SIA's presence in India, strengn its multi-hub strategy, and allow it to continue participating directly in this large and fast-growing aviation market."

airline ded, "Deeper collaboration with like-minded airlines is an integral part of SIA Group's partnerships strategy. This enables SIA and its partners to drive more traffic to ir hubs, offer more options to customers, and increase Group's global footprint."

It is pertinent to mention that Singapore Airlines (SIA) revealed that for first time since outbreak of COVID-19 pandemic, has recorded a net profit of SGD 85 million (USD 62.8 million) for third fiscal quarter that ended in December 2021. 
SIA said in its Financial Year 2021-22 third-quarter business update that airlines carried around 1.1 million travellers during quarter, over five times number from previous year and double that of second quarter of FY 2021-22. Passenger capacity also grew, as it increased number of flights in response to demand created by VTL. By end of quarter, passenger capacity h reached 45 per cent of pre-COVID levels, it ded.

Profit increased by more than 117% to SGD1,249 million (USD925 million), despite significant increases in both passenger and cargo revenues to SGD2,316 million in same quarter last year. Notably, profit from travellers increased by SGD 650 million to SGD 833 million, representing a 355.2% increase on back of a 556.8% increase in traffic (measured by revenue-passenger kilometers) that outpaced capacity expansion, resulting in a passenger lo factor of 33.2%, an increase of 18.9 percentage points.