Vistara

There is

a Delhi Bali now which Vistara is doing.

Yes.

And Indigo is also doing.

Indigo is doing it from Bangalore.

At

least Vistara is doing that on a 787 whereas I think Indigo is still doing it on 321 or 320, I don't know.

320.

This was the obvious gap.

Then IndiGo's fares crept up into the same band as Air India and Vistara, airlines that still served a hot meal for free.

A low-cost ticket had basically become as pricey as the one that came with free lunch.

Now, both sides are meeting in the middle.

I think first things first, to begin with, Singapore Airlines didn't invest in Air India.

It's a legacy of their joint venture with Tata to start Vistara.

And that was actually a very successful endeavor.

It's not easy to start a new airline.

It's not easy to run an old airline, not to start a new one.

And Vistara was quite a successful airline.

In the 10 years it was in existence, it got a very good reputation, branding, picking up the premium niche in Indian domestic and international routes.

we need to put the 25.1% stake in that context.

Singapore Airlines has reiterated that its investment in Air India has been and will continue to be funded through its internal resources as questions grow in Singapore over the airline’s exposure to Air India’s losses.

SIA holds a twenty-five point one percent stake in the enlarged Air India group following the integration of Vistara.

The airline said any further capital request would be assessed by its board under its capital allocation framework.

The comments come after Air India sought around USD one point five billion from its shareholders following a record annual loss, adding pressure to its ongoing multi-year transformation.

So what does it take for a state-backed airline to make airline economics work? Stay tuned.

Singapore Airlines entered Air India's cap table in 2024 when Tata decided to merge Air India with Vistara under the Air India banner.

Vistara was a joint venture between Tata and Singapore Airlines or SIA, with SIA having a 49% stake.

When it came on board the merger, it maintained a 25.1% stake in Air India.

Now, SIA has been profitable for a streak of nearly 50 years, except for a two-year loss period because of the pandemic.