Tatas may consolidate AirAsia India, Vistara under Air India for operational synergy

The Tata Group has started an exercise to evaluate options to consolidate AirAsia India and Vistara under Air India to bring operational synergies among the three airlines under its umbrella, sources said.

Air India, which the group had taken control of in January after winning the bid to acquire the national carrier for Rs 18,000 crore in October last year, has set up a team under its Director of Operations, R S Sandhu, sources familiar with the development said.

The team will evaluate synergies in operations between Air India Express and AirAsia India as well as between Air India and Vistara, they said. "Air India CEO and MD Campbell Wilson has set up this team, which will look into 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 airlines businesses under the Air India umbrella by 2024.