NEW DELHI, Nov 29: Vistara is all set to merge with Air India. The Singapore Airlines (SIA) on Tuesday formally made the announcement that Vistara would merge with Air India owned by the Tata Sons.
Subject to regulatory approvals, the merger is expected to be completed by March 2024. As part of the transaction, SIA will also invest ₹2,058.5 crore in Air India. Tata Sons already hold a majority 51 per cent share in Vistara.
“This would give SIA a 25.1% stake in an enlarged Air India group with a significant presence in all key market segments. SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals,” SIA said in a release.
Singapore Airlines (SIA) in October had informed the Singapore Exchange that it was holding discussions with Tata Sons for the merger of Vistara and Air India. Vistara is a joint venture between Singapore Airlines and Tata Sons in which the former owns 49% stake and the latter 51%.
Since the government’s sale of Air India and its low-cost international arm Air India Express in January this year, Tata Sons has been working to consolidate all their airline businesses into one group, including its joint venture with AirAsia Berhad in AirAsia India.
Air India chief Campbell Wilson said Vistara’s success would strengthen Air India’s transformation programme and also help in quickly attaining the size befitting a global carrier.
In a statement, Mr. Campbell said Vistara has achieved much over the last eight years. “The skills, people, systems and processes that have driven Vistara’s success will compliment, strengthen and accelerate Air India’s Vihaan, the AI transformation programme,” the CEO and MD of Air India said.
Further, he said the merger would enable the new Air India to more quickly attain the size, reach and quality befitting of a world class airline proudly representing India around the globe.
Earlier this year, the Competition Commission of India approved the proposed acquisition of AirAsia India by Air India. Tata Sons own 83.67% in AirAsia India, and is expected to acquire the remaining stake from AirAsia Berhad.
(Manas Dasgupta)