Vistara to merge with Tata-owned Air India, announces Singapore Airlines
Singapore Airlines and Tata Group aim to complete the merger by March 2024, subject to regulatory approvals.
Vistara-Air India merger: Singapore Airlines announced on November 29, 2022, said that Vistara will be merged with TATA group-owned Air India. Tata Group owns a 51 percent stake in Vistara, and the remaining 49 percent shareholding is with Singapore Airlines.
As part of the transaction, Singapore Airlines (SIA) will also invest Rs. 2058.5 crores in Air India. As per the release by SIA, this would give SIA a 25.1 percent stake in an enlarged Air India group with a significant presence in all the key market segments. Singapore Airlines and Tata Group aim to complete the merger by March 2024, subject to regulatory approvals.
Tata Group announces the consolidation of its airlines, Vistara and Air India by March 2024. pic.twitter.com/40QW2pBFzQ— ANI (@ANI) November 29, 2022
Vistara-Air India merger: Key Points
1. This 25.1 percent stake of SIA will be in an enlarged Air India group-it will have Air India, Vistara, Air Asia India, and Air India Express- and the merger of all the airlines is targeted for completion by March 2024.
2. The Tata group is also already in the process of merging Air India Express and AirAsia India into one entity that will provide low-cost flight options.
3. Singapore Airlines and Tata Group have also agreed to participate in the additional capital injections, if required, to fund the growth and operations of the enlarged Air India in FY2022/23 and FY2023/24.
Why Vistara and Air India merger is significant?
As per the Chairman of Tata Sons, Natarajan Chandrasekaran, the merger of Vistara and Air India is a significant milestone in our journey to make Air India a truly world-class airline. TATA Group is transforming Air India with the aim of providing a great customer experience.
As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, and enhancing safety, reliability, and on-time performance.
The merger also provides an opportunity to deepen the relationship between Vistara and Tata Group and participate directly in an exciting new growth phase in India’s aviation market.
Singapore Airlines and Tata Group, earlier in October 2022, had held a confidential discussion for the potential integration of Air India and Vistara.
Tata Group acquired Air India from the Government. It controls a majority 51 percent stake in Vistara while 49 percent of the share is controlled by Singapore Airlines.
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