The merger of Vistara and Air India, two of the Tata Group’s airlines, was announced on Tuesday. With this merger, Air India will have a combined fleet of 218 aircraft, making it India’s largest international carrier and second-largest domestic carrier. Air India will be the country’s leading domestic and international carrier.
Vistara and Air India will merge after all necessary approvals have been received. In connection with the merger, SIA would also contribute Rs 2,059 crore to Air India. Following the consolidation, SIA will own 25.1% of the shares of Air India. By March 2024, the transaction is anticipated to be finished. India’s national airline is Air India, which is wholly owned by Tata Sons.
On January 27, 2022, Tata Sons, through its wholly owned subsidiary Talace Private Limited, acquired a 100% stake in Air India.
India’s top full-service airline, Vistara, was founded in 2013 and is a 51:49 joint venture between Tata Sons and Singapore Airlines Limited (SIA). It has international operations in the Middle East, Asia, and Europe.
On this occasion, N Chandrasekaran, Chairman, Tata Sons, said: “The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline. We are transforming Air India, with the aim of providing a great customer experience, every time, for every customer. As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, and enhancing safety, reliability, and on-time performance.”
The chairman added, “We are excited about the opportunity of creating a strong Air India, which would offer both full-service and low-cost service across domestic and international routes. We would like to thank Singapore Airlines for their continued partnership.”
Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said: “Tata Sons is one of the most established and respected names in India. 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. We will work together to support Air India’s transformation programme, unlock its significant potential, and restore it to its position as a leading airline on the global stage,” the CEO said.