singapore aviation On Tuesday announced the merger of Vistara and Air India by March 2024. The Tata group holds a 51 per cent stake in Vistara, and the remaining 49 per cent is held by Singapore Airlines (SIA).
As part of the transaction, SIA will also invest Rs 2,058.5 crore in Air India.
“This will give SIA a 25.1 per cent stake in an enlarged Air India group with a significant presence across all key market segments.
SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals,” SIA said in a release.
Business as usual during integration process: Vistara CEO
Soon after the Tata Group announced the merger of Vistara and Air India, Vistara CEO Vinod Kannan on Tuesday said that it will be business as usual for all stakeholders during the integration process, which will take some time.
In a statement, Kannan said Vistara is a fine expression of its parent brands Tata Sons and Singapore Airlines, and “we are glad to continue to be guided by their legacy as we merge with Air India”.
“The integration process will take some time, and during this phase, it will be business as usual for all our stakeholders including customers.
We will continue to share relevant information with all of them as appropriate,” he said.
Kannan said, “There is immense potential for an airline group with the scale and network of the combined entity. We look forward to providing more opportunities for our customers, employees and partners on a global platform with a focus on Indian aviation.” “
A full-service carrier, Vistara was the country’s second largest domestic carrier with a market share of 9.2 per cent in October.
Currently, the airline connects 43 domestic and foreign destinations and operates over 260 flights daily with a fleet of 54 aircraft.
It has about 4,700 employees.
India’s journey so far
Air India is owned by TALES Pvt Ltd, a special-purpose vehicle (SPV) of Tata Sons. Tata Sons bought the airlines from its former owner, the Government of India, in 2021 after winning the auction bid.
Air India, along with fifty per cent of its low-cost carrier Air India Express and AISATS, a ground handling company, was sold to Tata Sons’ SPV TALES Pvt Ltd for Rs 18,000 crore, officially handing over the airline to the Tata group. was given. 27 January 2022.
The airline operates a fleet of Airbus and Boeing aircraft serving 102 domestic and international destinations.
Air India has a hub at Indira Gandhi International Airport, New Delhi, along with several focus cities across the country.
It is the largest international carrier outside India with 18.6% market share.
The airline was founded by JRD Tata in 1932 as Tata Airlines. After World War II, it became a public limited company and was renamed Air India. After Indian independence in 1947, 49% of the airline was acquired by the Government of India in 1948. Later in 1953, the Center passed the Air Corporations Act and bought a majority stake in the carrier from Tata Sons.
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