Singapore Airlines is discussing a potential merger between Vistara and Air India.
SIA has a 49% stake in New Delhi-based Vistara with the Tata Group owning the remaining 51%.
The Asian carrier helped establish Vistara in 2013 to gain a foothold in India’s fast-growing aviation sector.
India has strong domestic and international traffic flows, which is expected to more than double over the next ten years.
In a statement to the Singapore stock exchange, SIA said: “In line with its multi-hub strategy, SIA is currently in confidential discussions with Tata to explore a potential transaction in relation to the securities of Vistara and Air India, a subsidiary of Tata.
“The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India.
“The discussions are on-going and no definitive terms have been agreed upon between the parties.”
India is seen an integral part of the SIA Group’s multi-hub strategy, allowing it to get access to important sources that complement its strong Singapore hub.
“The company will make the necessary announcements as appropriate or when there are any material developments regarding the potential transaction,” SIA added.