Tata Sons has begun work on merging low-cost carrier AirAsia India with Air India’s budget carrier Air India Express, The Economic Times reported.
The Tata group is looking to achieve synergies and cut operational costs once it takes over Air India.
AirAsia-Air India Express Merger
Owning an 84% stake in AirAsia India, Tata’s first step in creating a single airline entity will be easy. Tata is yet to conclude talks with Singapore Airlines (SIA) on integrating the schedules of Vistara and Air India, the people said.
Tata also owns 51% of Vistara and SIA holds the rest.
“This is the most logical move at this stage and with Tata owning a majority in Air Asia, the integration is easier,” said one of the persons. “With many experts on deck, this integration will help the group swiftly set up the single airline structure it has been planning for a while.”
Recently there was a meeting with the senior management of both AirAsia India and Air India to discuss things like integration of employees and aircraft quality and safety checks. External integration specialists have been part of these meetings, said the people cited above.
 “There is a sense of urgency to quickly get operations seamlessly off the ground and ensure no disruptions at customer-facing points,” said one of them.
 Official Statement Regarding The Matter
“Duality of operations and staff redeployment are also being looked into for cost efficiencies,” said a source.
Tata Sons did not respond to requests for information. Even AirAsia India’s representative declined to comment.
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