The merger of Air India and Vistara was approved on Tuesday by Singapore Airlines (SIA) and Tata Sons, with SIA receiving a 25.1% ownership in the combined company in exchange for an investment of Rs 2,058.5 crore ($250 million) in Air India.
This 25.1% interest will be in an expanded Air India group, which would include Air India, Vistara, AirAsia India, and Air India Express. Subject to regulatory permissions, the merger of all airlines is anticipated to be completed by March 2024. Air India Express and AirAsia India will soon be combined into one company that will offer low-cost flight options. This process is already underway.
One of the most reputable and well-known names in India is Tata Sons. Our joint efforts to establish Vistara in 2013 produced a market-leading full-service carrier that has quickly garnered numerous awards on a worldwide scale. With this combination, we have the chance to strengthen our bond with Tata and actively take part in the aviation market’s exciting new growth phase in India. Together, we will support Air India’s reform initiative, tap into its enormous potential, and help it regain its status as a preeminent airline on the international scene. The announcement included a comment from Singapore Airlines CEO Goh Choon Phong.
“Our goal is to transform Air India into a really world-class airline, and the merger of Vistara with Air India is a significant step in that direction. With the goal of giving each and every customer a fantastic customer experience, we are reinventing Air India. Air India is concentrating on expanding both its network and fleet as part of the transition, reworking its customer pitch, and improving safety, dependability, and on-time performance. The possibility of building a powerful Air India that would provide full-service and affordable services on both domestic and international routes excites us. For their ongoing support, we would like to thank Singapore Airlines. The announcement included a comment from Tata Sons Chairman Natarajan Chandrasekaran.