New Delhi: Singapore Airlines today (November 29) announced Vistara will be merged with Tata group-owned Air India. As part of the transaction, SIA will also invest ₹2,058.5 crores in Air India.
SIA said in a release issued today, “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”.
At present, 51 percent share in Vistara is with Tata, while Singapore Airlines owns the remaining 49 percent in the joint venture set up in 2013.
This will take the fleet size to 218, putting together Air India’s 113 with AirAsia India’s 28, Vistara’s 53, and Air India Express’s 24. It will then be India’s largest international carrier and second-largest domestic carrier, Tata Sons said.
“As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performance,” the company release quoted Tata Sons chairperson N Chandrasekaran as saying.
Goh Choon Phong, the chief executive of Singapore Airlines, said, “Our collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier, which has won many global accolades in a short time. With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market.”
