The prospective mega-order comes just days after Tata announced the merger of Air India and Vistara, a joint venture with Singapore Airlines, to establish a larger full-service airline with a stronger footprint in local and international skies.
This agreement provides Tata a fleet of 218 aircraft, establishing Air India as the country’s biggest international airline and the country’s second largest domestic carrier behind IndiGo (INGL.NS)
Purchasing a debt-ridden property Tata has also gained crucial flight rights and landing slots with Air India, particularly to destinations in the United States and Europe.
OBSTACLES TO GROWTH
The maharajah mascot of Air India was once linked with lavishly adorned aircraft and exceptional service, but its image deteriorated in the mid-2000s as financial difficulties increased.
