Explorer

Singapore's Competition Commission Raises Concerns With Tata Group On Air India's Acquisition

Air India, Vistara, and Singapore Airlines are the three airlines that operate on the two aforementioned routes. Vistara's 51% stake is held by Tata Group and the rest 49% is with Singapore Airlines

Singapore's competition commission on Friday said it has raised concerns with the Tata Group over its acquisition of Air India as the conglomerate now owns two of the three key airlines that operate flights on Singapore-Mumbai and Singapore-Delhi routes.

Air India, Vistara, and Singapore Airlines are the three key airlines that operate on the two aforementioned routes. Vistara's 51 per cent stake is held by the Tata Group and the remaining 49 per cent is with Singapore Airlines.

Talace Private Limited, a subsidiary of the Tata Sons Private Limited, took control of Air India on January 27 after successfully winning the bid for the airline on October 8 last year.

In a statement on Friday, the Competition and Consumer Commission of Singapore (CCCS) said it has raised competition concerns with Talace Private Limited on the transaction (Tata's acquisition of Air India) based on information received from Talace and third parties.

"In particular, Air India and Vistara are two of the three key market players along the overlapping air passenger transport routes (Singapore-Mumbai and Singapore-Delhi), and both airlines are likely to be each other's close (if not the closest) competitor," the CCCS noted.

Third party feedback also suggests the presence of Singapore Airlines as a significant competitor of Air India and Vistara along the overlapping air passenger transport routes (Singapore-Mumbai and Singapore-Delhi) and the overlapping air cargo transport routes (Singapore-India), it mentioned.

"However, the CCCS needs to assess further the extent to which Singapore Airlines competes with the merged entity along these routes, given that Singapore Airlines is a joint-venture partner with Tata Sons in Vistara and a prospective partner with Vistara in the Commercial Cooperation Framework Agreement," it noted.

The CCCS stated it also needs to assess further whether the competitive constraint from other airlines such as IndiGo would be sufficient post transaction, it mentioned.

Accordingly, the CCCS needs to further review the competition effects of the this transaction (Tata's acquisition of Air India) in greater detail, it noted.

"At this stage, the parties may offer commitments to address the potential competition concerns of the Transaction raised by the CCCS. Otherwise, the merger will proceed to a detailed further review upon the CCCS's receipt of the relevant documents from the parties," it mentioned.

The Competition Commission of India (CCI) had on December 20, 2021 announced that it has approved Tata Group's proposed acquisition of debt-laden Air India.

The Tata Group had on May 12 announced that Campbell Wilson, CEO of Singapore Airlines' low-cost subsidiary Scoot Airlines, has been appointed as the CEO and Managing Director of Air India. He is expected to take charge at Air India during the next few weeks, aviation industry sources said.

Since April, Air India chairman N Chandrasekaran, who is also the chairman of the Tata Group, has rejigged the top management of the airline, bringing in senior and middle-level executives who have worked in other companies of the Tata group such as Tata Steel and Vistara.

Air India had on June 1 reduced the eligibility age from 55 to 40 years and announced cash incentive to encourage a significant section of its employees to voluntarily retire.

View More
Advertisement

IPL Auction 2025

Most Expensive Players In The Squad
Virat Kohli
₹21 CR
Josh Hazlewood
₹12.50 CR
Rajat Patidar
₹11 CR
View all
Most Expensive Players In The Squad
Rishabh Pant
₹27 CR
Nicholas Pooran
₹21 CR
Ravi Bishnoi
₹11 CR
View all
Most Expensive Players In The Squad
Jasprit Bumrah
₹18 CR
Suryakumar Yadav
₹16.35 CR
Hardik Pandya
₹16.35 CR
View all
Most Expensive Players In The Squad
Heinrich Klaasen
₹23 CR
Pat Cummins
₹18 CR
Abhishek Sharma
₹14 CR
View all
Most Expensive Players In The Squad
Ruturaj Gaikwad
₹18 CR
Ravindra Jadeja
₹18 CR
Matheesha Pathirana
₹13 CR
View all
Most Expensive Players In The Squad
Shreyas Iyer
₹26.75 CR
Arshdeep Singh
₹18 CR
Yuzvendra Chahal
₹18 CR
View all
Most Expensive Players In The Squad
Sanju Samson
₹18 CR
Yashaswi Jaiswal
₹18 CR
Riyan Parag
₹14 CR
View all
Most Expensive Players In The Squad
Venkatesh Iyer
₹23.75 CR
Rinku Singh
₹13 CR
Varun Chakaravarthy
₹12 CR
View all
Most Expensive Players In The Squad
Rashid Khan
₹18 CR
Shubman Gill
₹16.5 CR
Jos Buttler
₹15.75 CR
View all
Most Expensive Players In The Squad
Axar Patel
₹16.5 CR
KL Rahul
₹14 CR
Kuldeep Yadav
₹13.25 CR
View all
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Parliament Winter Session: Protests Over Adani Charges Force Adjournment Of Both Houses
Parliament Winter Session: Protests Over Adani Charges Force Adjournment Of Both Houses
IND vs AUS 1st Test: India Crush Australia By 295 Runs At Perth To Take 1-0 Lead In Border-Gavaskar Trophy
IND vs AUS 1st Test: India Crush Australia By 295 Runs At Perth To Take 1-0 Lead In Border-Gavaskar Trophy
Yogi Govt, Vishva Hindu Parishad Planned Sambhal Violence For 2027 UP Elections: SP
Yogi Govt, Vishva Hindu Parishad Planned Sambhal Violence For 2027 UP Elections: SP
Parliament Winter Session Live: Lok  Sabha, Rajya Sabha Adjourned Till Nov 27 After Protests To Discuss Adani Issue
Lok Sabha, Rajya Sabha Adjourned Till Nov 27 After Protests To Discuss Adani Issue
Advertisement
ABP Premium

Videos

FIR Filed Against Sambhal MP Ziaur Rahman, Statement Released Amidst ControversyFIR Filed Against Sambhal MP Ziaur Rahman and Local MLA's Son in Controversial CaseSambhal Violence Sparks Political Firestorm, Congress MP Imran Masood's Strong Remarks | ABP NewsBreaking News: SP Leader Ram Gopal Yadav Reacts to Sambhal Violence | ABP News

Photo Gallery

Embed widget