SIA will have its 25.1% ownership stake in Air India, after the merger is finalised
Singapore Airlines has expressed its commitment to expedite the merger of Vistara with Air India, aiming for a swift completion of the process. This significant development was reported by the Press Trust of India (PTI) and is subject to regulatory approvals and compliance with legal requirements.
C-2023/04/1022 CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties.#CCIMerger #Mergers pic.twitter.com/QihGf4xxus
— CCI (@CCI_India) September 1, 2023
The proposed merger, which received approval from the Competition Commission of India (CCI) on 1st September, will give Singapore Airlines a 25.1% stake in Air India upon completion. Vistara is a joint venture where Singapore Airlines holds a 49% stake, and the rest 51% lies with Tata Sons.
A report states that the Tata Group had announced plans for the merger last November, revealing that upon Singapore Airlines’ (SIA) injection of ₹2,059 crores into Air India, SIA will have its 25.1% ownership stake in Air India, after the merger is finalised. The anticipated completion date for this transaction is March 2024, as indicated in a previous announcement made by Singapore Airlines.
The prospective merger could yield cost efficiencies for both Vistara and Air India. Additionally, it may grant Singapore Airlines access to numerous new international airport slots. Simultaneously, Tata Sons can streamline its aviation business finances.
While Air India and Vistara are likely to maintain their distinct brand identities initially, this merger marks a substantial step in the consolidation of the aviation industry in India. Once finalised, Singapore Airlines will significantly bolster its foothold in the Indian market, which has seen substantial growth and competition in recent years.
