The year 2022 has seen lots of layoffs due to COVID-19. Tata Group Chairman N. Chandrasekaran in the New Year letter to employees has said, ‘In 2023, we are likely to see inflation gradually moderate.’
Tata Group Chairman N. Chandrasekaran said, “Next year we are likely to see inflation gradually moderate. India is well positioned, and we will continue to be the fastest growing major economy, supported by increasing consumption, consumer confidence, and investment.”
“Slowing global growth may act as a drag on output, but our rising share of global manufacturing should provide some buffer/insulation,” N. Chandrasekaran added.
He also pointed out that Tata Group has “tremendous opportunity” amid global transitions towards, sustainability and diversified supply chains.
“We have experienced significant milestones during the year, including the welcoming of Air India back to the Group; the launch of Tata Neu; and Tata Motors passenger vehicles crossing 500,000 cars sold within a calendar year, with Tata EV cars accounting for 10 percent,” he said.
Recently, Air India, an airline fully owned by Tata Sons, has been the flag carrier of India. Tata Sons, via its fully owned subsidiary, Talace Private Limited (“Talace)”, acquired 100% stake in Air India on 27th January 2022.
Vistara, a 51:49 Joint Venture between Tata Sons and Singapore Airlines Limited (“SIA”) was established in 2013 and is India’s leading full-service carrier with international operations in Middle East, Asia, and Europe.
Vistara shall be merged with Air India post receipt of requisite approvals. As part of the merger transaction, SIA shall also invest Rs 2,059 crore in Air India. Post the consolidation, SIA shall hold 25.1% shareholding in Air India.
The transaction is estimated to be completed by March 2024.
On this occasion, Mr. N Chandrasekaran, Chairman, Tata Sons said: “The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline. We are transforming Air India, with the aim of providing great customer experience, every time, for every customer.”
“As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, and enhancing safety, reliability, and on-time performance. We are excited with the opportunity of creating a strong Air India which would offer both full-service and low-cost service across domestic and international routes. We would like to thank Singapore Airlines for their continued partnership”, N Chandrasekaran added.
Mr Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said: “Tata Sons is one of the most established and respected names in India. Our collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier, which has won many global accolades in a short time.”
“With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market. We will work together to support Air India’s transformation program, unlock its significant potential, and restore it to its position as a leading airline on the global stage”, Mr Goh Choon Phong added.