Indian conglomerate Tata Sons is reportedly looking to exit AirAsia India even as talks with Jet Airways over a possible investment are underway.
Sources familiar with developments told The Economic Times that Tata Sons was looking to consolidate its aviation interests around a singular Vistara-cum-Jet Airways platform and as such, had started talks over its potential exit from scandal-ridden AirAsia India. The LCC is a 51/49 joint venture between Tata Sons and AirAsia Group while Vistara is a similar tie-up albeit with Singapore Airlines.
Neither Tata Sons, AirAsia Group, nor Singapore Airlines commented on the report.
The Economic Times had earlier cited two people with direct knowledge of the development as saying that talks between Tata Sons, Singapore Airlines and Jet Airways management had accelerated after US private equity giant TPG Capital had cooled on its talks to buy a stake in Jet.
According to the report, Jet Airways would first merge with Tata SIA Airlines Ltd. t/a Vistara through a share swap. Thereafter, Jet Airways' largest singular shareholders, Naresh Goyal and his family and Etihad Airways, Tata Sons and Singapore Airlines would all become partners in the newly merged company. Then, in the second stage, Singapore Airlines would buy out the Goyal family leaving Etihad as a minority shareholder in the newly enlarged airline.
Neither party responded to a request for comment.
Tata Sons' interest in Jet Airways stems from the carrier's access to vital route authorities and landing slots all of which Vistara and AirAsia India have been unable to access. The government has withheld overseas flying rights to not just AirAsia India but also Vistara given the ongoing government investigations into Tata Sons as well as AirAsia in an alleged corruption case.
