Ilker Ayci, former head of Turkish Airlines and the man credited with its turnaround has already had his first taste of India. Even before he got going, the ministry of home affairs has promised to “scrupulously” probe his antecedents after reports on his alleged links with Al-Qaeda. That should give him some idea of what he might come to expect as the CEO of the erstwhile national carrier.
As Tatas take full charge of their new acquisition, some details of what one might expect in the immediate future are now beginning to emerge. More widely known, a decision has been taken to begin with to merge AirAsia India (AAI) after AirAsia Berhad fully exits the venture. A 32.7% stake has already been bought by the Tata group for $37.7 million. Soon, the group will buy the remaining 16.3% stake for $18.83 million. With this, Tata group holding in the company will go up to 100% and the airline will be merged into the existing Air India. This merger is likely to take around nine to 12 months from now, according to sources close to the developments. AirAsia Berhad chief Tony Fernandes, who in 2013 brought in half the $30 million for his 49% stake, will walk away with $56-odd million post the buy-out. Since funds were infused by both partners through this nine year period, it is difficult to assess whether the investment financially paid off for Fernandes. In terms of the controversies the airline courted in the initial years, many would argue it wasn’t. As things stand, AirAsia India has a fleet of 28 A320s and has a market share of 4.6% as per DGCA’s January 2022 data.
What is lesser known is that a decision has also been taken to let Vistara function independently for now. Post pandemic, the Tata joint venture partner Singapore Airlines (SIA) is neither in a position nor in the frame of mind to take any financial calls on something as big as this. If and when SIA is ready to consider this matter in its entirety, it is possible Vistara may enter the new entity with SIA…