Vistara’s merger with Air India is one step closer with Centre clearing Singapore Airlines’ (SIA) ₹2,058-crore investment in the merged entity.
In November 2022 SIA announced an investment in Air India for a 25.1 per cent stake. With the foreign direct investment approval in place, the two sides are targeting completion of the merger by December-end.
In a stock exchange notification, SIA said investment approval along with other governmental and regulatory approvals received to-date, mark a significant development towards the completion of the merger.
“SIA and its partner Tata Sons aim to finalise the merger by the end of 2024,” the airline said.
SIA holds 49 per cent stake in Vistara, which it co-founded with Tata Sons. The airline began operations in January 2015.
“SIA and Tata Sons are firmly committed to supporting the growth and success of the Air India Group, which post-merger will have a significant presence in all key Indian airline market segments. This merger will reinforce SIA’s multi-hub strategy, and underscore its long-standing commitment to India through a direct stake in this large and rapidly growing aviation market,” the airline added.
In June, the two sides received the National Company Law Tribunal’s approval for merger. In July, the civil aviation regulator approved harmonisation of operating manuals of the two airlines, a key step towards the integration.
Vistara will merge with Air India on November 12 marking an end to near decade long journey. The merger date has been announced after Centre cleared Singapore Airlines’ Rs 2058 crore investment in Air India group.
Starting September 3, customers will, progressively, no longer be able to make bookings with Vistara for travel on or after November 12. Vistara will continue to take bookings and operate flights, as usual till November 11.