Tata Sons has started work on merging low-fare airline AirAsia India with Air India Express, the budget carrier of state-owned Air India that the conglomerate has bought from the government. The Tata group is looking to achieve synergies and cut operational costs, the Economic Times reported on Thursday citing unnamed sources.
Tata owns 84 per cent stake in AirAsia India, allowing it to create a single airline entity quickly, the sources told the newspaper. Tata is yet to finish talks with Singapore Airlines (SIA) on integrating the schedules of Vistara and Air India said. Tata owns 51 per cent of Vistara and SIA the rest.
