Friday, September 25, 2020

Vistara partner Singapore Airlines concerned over Tatas’ interest in Air India

Mumbai: Tatas' joint venture partner Singapore Airlines joint venture partner for Vistara, and Temasek, SIA's majority stakeholder, are believed to have voiced their unwillingness to Tata Sons about its probable bid for the national carrier Air India.

It is believed that top officials from both the partner organizations have raised their concerns personally to the Tata Sons chairperson N Chandrasekaran. "Temasek also has an investment in some Tata group firms and periodic evaluations are undertaken. It was during such a meet that the JV partner conveyed apprehensions," a group insider told ET. 

Earlier, Tata Sons had confirmed to the financial publication that it was evaluating a bid for Air India and would decide on the same after consideration.

Temasek and SIA's apprehensions stem from the non-compete agreement between the Singaporean carrier and the Tata group when they decided to come together to launch Vistara.

The agreement stipulates that Vistara has an exclusive right to undertake "full-service carrier" services within the overall Tata aviation offering.

A bid for Air India by Tata group on its own would violate this understanding unless SIA gives a waiver. A bid by Vistara would also require consent from SIA and Temasek, which owns 55% in SIA.

25/09/20 ET Now News

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