Vistara Airlines To Be Scrapped

Tata Group is planning to integrate its four airline brands under Air India Ltd., experts said, as the sprawling company prepares to rebuild its faltering aviation empire.

India's largest conglomerate is considering scrapping the Vistara brand, which is Singapore Airlines Ltd.'s local affiliate in the South Asian nation, the people said, declining to be identified because the discussions are entirely private. Singapore Airlines is evaluating the size of stake it should take in the combined entity, one of the people said.

Representatives for the Tata Group, Air India and Vistara didn't respond to requests for comment. Singapore Airlines said in a statement that "discussions are ongoing between SIA and Tata" and that it had nothing further to add beyond an Oct.

13 exchange filing, which said the talks "seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India."

Air India is gearing up for a revamp under its new Tata ownership.

The full-service carrier is considering ordering 300 narrow-body jets, a transaction that would be one of the largest orders in commercial aviation history.

In October, Air India Chief Executive Campbell Wilson said that the airline will triple its fleet of 113 aircraft over five years, with a "significant" increase in both narrow and wide-body aircraft.