ARC NEWS
​SIA in 'confidential discussions' about Vistara-Air India merger
October 14, 2022
Singapore Airlines is holding "confidential discussions" with India's Tata Group about a potential integration of Vistara and Air India. "The establishment of Vistara in 2013 gave the SIA Group a stake in India’s fast-growing aviation sector. India has strong domestic and international traffic flows, which is expected to more than double over the next 10 years. This is an integral part of the SIA Group’s multi-hub strategy, allowing it to get access to important sources that complement its strong Singapore hub," Singapore Airlines says in a 13 October filing to the Singapore Exchange. "In line with its multi-hub strategy, SIA is currently in confidential discussions with Tata to explore a potential transaction in relation to the securities of Vistara and Air India Ltd... The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India." The discussions are ongoing and no definitive terms have been agreed upon between the parties, the Singaporean flag carrier adds. There is also, it says, "no certainty or assurance whatsoever" that any definitive agreement will be entered into, or that the potential transaction will materialise or "proceed to completion arising from these discussions". "Even if a transaction were to materialise, it would be subject to the relevant regulatory approvals, amongst other matters," the airline says. Singapore Airlines holds a 49% equity interest in Tata SIA Airlines, which operates as Vistara and is based in New Delhi. Tata Group holds the remaining 51%. On 27 January 2022, Tata Group closed the acquisition of Air India, having been selected as the new owner of the airline by the Indian government in October 2021. That selection followed a drawn-out sales process which was repeatedly delayed. Air India's current chief executive, Campbell Wilson, who was appointed in May, previously served as the chief executive of SIA's low-cost subsidiary Scoot.


​ITA to start A220 passenger flights on 16 October
October 13, 2022
ITA Airways plans to activate its Airbus A220 fleet on 16 October. The Italian carrier says it will launch A220 passenger flights with two -300s. Data shows that ITA has ordered a total of nine A220-300s and 13 A220-100s. Air Lease Corporation is listed as manager of all nine -300s and six of the -100s. ITA additionally has 23 A320neos, nine A321neos and 17 A330-900s on order. It has not disclosed a selection between the CFM International Leap-1A and Pratt & Whitney PW1100G for its A320neo-family jets. The PW1500G is the sole powerplant available for the A220.
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SAA expands fleet with three more A320s
October 13, 2022
South African Airways (SAA) is bringing into service an additional three Airbus A320s, taking the total number of A320s to five to support the high-capacity demand. The first of these was delivered on 25 September and the rest will be delivered every month from thence, says the Johannesburg-based carrier. Currently, the airline operates seven Airbus aircraft, consisting of two A320s, three A319s, one A330-300 and one A340-300. Chief commercial officer Tebogo Tsima states: "SAA is replacing its A340-300 with a similar capacity aircraft and will exit the A319 fleet in 2023." "As we increase fleet size to match the needs of the growing network schedule, we are encouraged that our strategy to cautiously re-enter markets abandoned due to the Covid pandemic has served us very well during the past 12 months and we will continue to follow that cautious risk-adjusted trajectory," he adds. Over the last two weeks, SAA has increased the aircraft size on its two routes, Cape Town and Harare. The Harare-Johannesburg route is now serviced by the A330 aircraft on three of its seven-day weekly frequencies.


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