Singapore Airlines on November 29 said Vistara will be merged with Tata group-owned Air India.As part of the transaction, SIA will also invest ₹2,058.5 crore in Air India. “This would give SIA a 25.1% stake in an enlarged Air India group with a significant presence in all key market segments.
Singapore Exchange was holding discussions with Tata Sons for the merger of Vistara and Air India
SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals,” SIA said in a release.Singapore Airlines (SIA) in October informed the Singapore Exchange that it was holding discussions with Tata Sons for the merger of Vistara and Air India.
Tata Sons has been working to consolidate all their airline businesses into one group
Vistara is a joint venture between Singapore Airlines and Tata Sons in which the former owns 49% stake and the latter 51%. Since the government’s sale of Air India and its low-cost international arm Air India Express in January this year, Tata Sons has been working to consolidate all their airline businesses into one group, including its joint venture with AirAsia Berhad in AirAsia India.
merger is expected to be completed by March 2024
Air India chief Campbell Wilson said that Vistara’s success will strengthen Air India’s transformation programme and also help in quickly attaining the size befitting a global carrier. Subject to regulatory approvals, the merger is expected to be completed by March 2024. In a statement, Mr. Campbell said Vistara has achieved much over the last eight years.
Quality befitting of a world class airline proudly representing India around the globe
“The skills, people, systems and processes that have driven Vistara’s success will complement, strengthen and accelerate Air India’s Vihaan.AI transformation programme,” the CEO and MD of Air India said. Further, he said the merger will enable the new Air India to more quickly attain the size, reach and quality befitting of a world class airline proudly representing India around the globe.
Tata Sons own 83.67% in AirAsia India, and is expected to acquire the remaining stake
Earlier this year, the Competition Commission of India approved the proposed acquisition of AirAsia India by Air India. Tata Sons own 83.67% in AirAsia India, and is expected to acquire the remaining stake from AirAsia Berhad.
To read and know more news, now you can also follow us on social media – To follow on Twitter, type – @khas_khabar and to read news #khas_khabar live follow on Facebook. You can follow us on our page @socialkhabarlive.