SIA won’t be Tata Group’s co-pilot in bid for Air India

Singapore Airlines (SIA) won’t partner the Tata Group in its bid for state-owned Air India, according to people with knowledge of the matter. Tata had hoped to rope in SIA and make the bid through their Vistara joint venture. The Singaporean carrier has, however, waived their no-compete clause, allowing Tata to go ahead with a solo bid for the stricken carrier. Tata had been trying to persuade SIA to join it on the Air India bid for months. A key reason for SIA’s reluctance is said to have been the long-term funding that Air India will need to return to viability, said the persons.

Tata Sons, the holding company of the conglomerate, can’t bid without SIA’s approval and its waiver of the no-compete clause. Tata could bid on its own or through its AirAsia India unit, in which it has been increasing its stake, lowering that of joint venture partner AirAsia Bhd. While there are some legal challenges regarding this latter avenue, the group can work around them, executives said.