With the aim to make Tata Sons' Air India a world-class airline, the Tata Group on Tuesday announced the merger of Air India and Singapore Airlines Limited's Vistara.
The grande merger is estimated to be completed by March 2024. With a combined fleet of 218 aircraft, Air India will attain the pedestal of being India's largest international carrier and second-largest domestic carrier after the merger.
- Air India, the flag carrier of India, was acquired by Tata Sons with 100 per cent stake in January 2022. Vistara is a joint venture of Tata Sons Private Limited and Singapore Airlines Limited (SIA), with the Tatas holding 51% stake and Singapore Airlines 49%. The company is registered as TATA SIA Airlines Limited.
The airline has made a name for itself in the Middle East, Asia, and Europe with its international operations.
Singapore Airlines Limited shall invest Rs 2,059 crore in Air India as part of the merger. As part of the deal, SIA will also pump in $250 million in Air India which would give SIA a 25.1 percent stake in an enlarged Air India group with a significant presence in all key market segments.
Through this merger, SIA will acquire a stake in an entity that is four to five times larger in scale than Vistara. This will strengthen its presence in India’s large and fast-growing aviation market.
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