Tata Group consolidation will have significant ramifications for the India market: CAPA

According to CAPA’s Outlook 2024, the Indian market is set for some major consolidation in 2024, through takeovers, and possibly by the exit of financially struggling airlines. The Tata Group is a major driver of this due to its efforts to consolidate its multiple airline brands. Tata intends to merge Air India with Vistara, which is a joint venture between Tata and Singapore Airlines. Indian competition authorities approved the merger in Sep-2023, but more clearances are needed from agencies inside and outside India. Tata is also planning to merge its LCC brands, with AirAsia India to become part of Air India Express. A combined Air India and Vistara will account for 18.4% of India’s domestic capacity, and AirAsia India and Air India Express another 8%. The four airlines combined would contribute more than 23% of the country’s international capacity. Some other names may also disappear in the Indian airline industry.