Tatas likely to take call on cash-strapped Air India bid this week

JV with Singapore Airlines, Temasek may submit EoI.

Tata Sons and Singapore Airlines are actively weighing the option to bid for Air India and a decision to submit an expression of interest (EoI) could be taken soon.

Sources aware of the development said the board of Tata Sons, the holding company of the group, would meet later this week and possibly take up the Air India matter for approval.

Singapore government’s sovereign fund Temasek is also likely to be a part of the consortium being planned for the Air India bid, one of the sources said.

When asked about Tata group’s interest in Air India, Bhaskar Bhat, chairman of Vistara and a director in Tata Sons board, said the group was evaluating options.

"We are evaluating Air India. Which company would not be interested in evaluating a sovereign airline of the country?...Whether we bid or not comes later," he said. On whether Vistara or Tata Sons was evaluating Air India, Bhat said, "We (Vistara) are a joint venture".

The government has decided to sell 100 per cent stake in the airline and has invited bids for it. The last date to submit bids is March 17 but the deadline could be extended if there are requests from potential bidders.

Officials involved in Air India’s sale process said a big reason why the Tata group didn’t submit a bid last time was the government’s decision to hold on to 24 per cent stake. “They were interested last time too. But a big hurdle was that they wouldn’t have been able to merge Air India with Vistara unless they owned 100 per cent,” another source said.

After its unsuccessful bid to sell Air India in 2018, the central government this time has decided to off-load its entire stake.

Tatas, the salt-to-software conglomerate, and Singapore’s national airline operate Vistara, which inducted its first wide body aircraft Boeing 787-9 Dreamliner on Monday.

The wide body aircraft is the centre piece of Vistara’s business plan. It’s expecting that supremacy in long-haul international routes will help it recoup losses due to the cut-throat domestic market dominated by low-cost airlines.

Vistara takes delivery of its first Boeing B787-9 Dreamliner aircraft

The new aircraft is the first of the six that Vistara has purchased from Boeing.

Vistara took the delivery of its first wide-body Boeing 787-9 Dreamliner plane on Friday, making it the first Indian airline to fly this aircraft.

The plane, which has the registration number VT-TSD, will depart from the Boeing facility here at 2 pm (local time) on Friday and land in Delhi at 2 pm (local time) on Saturday, Vistara officials said here.

The new aircraft is the first of the six that Vistara has purchased from Boeing.

The second Dreamliner aircraft is currently on the production line and will be delivered soon.

Vistara's Boeing 787-9 Dreamliner aircraft comes with 299 seats in a three-class cabin configuration, giving customers a choice of business, premium economy and economy cabins.

The aircraft features lie-flat business class seats in a 1-2-1 configuration that gives a direct aisle access to each business class passenger and a separate premium economy cabin that offers seats in a 2-3-2 configuration.

The aircraft has in-seat televisions in all three cabins with a high-definition (HD) display, powered by Panasonic as well as in-flight WiFi internet connectivity onboard long-haul international flights, officials stated.

It would make Vistara the first airline to offer WiFi service in India.

Vistara to launch international flights in the second half of 2019

A joint venture between Tatas and Singapore Airlines, Vistara might also look at starting medium and long-haul flights, depending on approvals, amid the grounding of Jet Airways.

Business Standard : Full service carrier Vistara, which has been serving the Indian skies for more than four years, plans to launch international services in the second half of this year.

A joint venture between Tatas and Singapore Airlines, Vistara might also look at starting medium and long-haul flights, depending on approvals, amid the grounding of Jet Airways.

"We see India as a growing market. We are here for the long term," Vistara CEO Leslie Thng said on the sidelines of the annual general meeting of airlines' grouping IATA on Sunday.

Without providing specific details, he said the airline plans to start international operations in the second half of 2019.

It had planned to launch overseas flights in the first half of this year.

Currently, Vistara has more than 22 planes and operates around 850 flights every week.

Last month, the carrier announced it would take on lease four Boeing 737-800 NG aircraft and two A320 neo planes.

In 2018, Vistara placed its order for purchased and leased aircraft totalling 50 from the Airbus A320neo family, including A321neos.

These would be for domestic as well as short and medium-haul international operations, with deliveries scheduled between 2019 and 2023.

Further, the carrier has bought six Boeing 787-9 Dreamliner aircraft that are scheduled to be delivered between 2020 and 2021. These would operate long-haul international operations.

Thng said, Vistara can start short-haul flights but would need more time for long-haul ones.

"If we do get the necessary rights, we do have a plan in place on how do we plan to operationalise it but I will not be able to share too much detail...," he said.

According to him, the airline would look at options to deploy the right type of aircraft provided it gets the necessary flying rights.