As international flights resume from March 27, the Tata Group is all set to revamp Air India with the early focus being select international routes, CNBC-TV18 reported.
Air India will also be expanding flight routes and adding destinations in the United States – a key area of interest at present as the Ukraine-Russia war affects several airlines, sources told CNBC.
Expanding new routes will help present a new experience, sources told CNBC, as the Tata Group looks to turn around the airline after taking over the loss-making company from the government after 69 years.
Airspaces over Ukraine and Russia have been affected due to the raging war between the countries, leading to airlines taking longer routes to reach destinations. This has increased fuel and operational costs. This has piqued the Tatas’ interest who are keen on starting more routes as United Airlines and others take a backseat.
Sources tell @awnusharma, @airindiain likely to focus on select international routes to showcase new experience, CEO candidate finalisation likely soon pic.twitter.com/2zvugVpepH— CNBC-TV18 (@CNBCTV18Live) March 15, 2022
Another key development is that Singapore Airlines (SIA) is open to considering the merger of synergies between Vistara and Air India. However, SIA told CNBC, "Singapore Airlines does not comment on any confidential discussions it may or may not be having." SIA has 49 percent stake in Vistara, a joint venture between Tata Sons and Singapore Airlines.
The Tata Group acquired Air India back from the government with a winning bid of Rs 18,000 crore. The Tatas' would pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline’s debt. The takeover of the airline was completed on January 27.
