India has approved Singapore Airlines' ₹2,058.5 crore foreign direct investment (FDI) in Air India Group, paving the way for the merger of Vistara with Air India. This deal will create one of the world’s largest airline groups.
Under the merger, Vistara, a joint venture between Tata Group and Singapore Airlines, will cease operations on November 11. Singapore Airlines will hold a 25.1% stake in the newly enlarged Air India Group.
Singapore Airlines confirmed on Friday that the Indian government has authorised its FDI as part of the ongoing merger process. This approval is a crucial step toward finalising the merger, expected to be completed by year-end.
Air India CEO and MD Campbell Wilson informed employees that Vistara's aircraft and crew will transition to Air India on November 12. Vistara will operate its final flight under its own brand on November 11, with a 10% domestic market share as of July.
From September 3, 2024, bookings for travel on or after November 12 will no longer be available through Vistara, which will be redirected to Air India’s website. Vistara will continue operating flights as usual until November 11.
The government’s approval of Singapore Airlines' ₹2,058.5 crore FDI is the final major clearance needed for the merger, which was initially announced in November 2022.
The National Company Law Tribunal (NCLT) approved the merger in June, and Singapore's competition regulator CCCS granted conditional approval in March. The Competition Commission of India (CCI) also approved the deal in September 2023, subject to conditions.
Wilson noted that flight numbers for Vistara services from November 12 will change to Air India, although aircraft, schedules, and crews will remain the same until early 2025. A set of FAQs has been provided to assist passengers during the merger.
Air India and Vistara, which started operations in January 2015, employ over 23,000 staff. Approximately 600 non-flying staff are expected to be affected by the merger, with efforts being made to find new roles within the Air India Group and Tata companies.
Singapore Airlines and Tata Sons are committed to supporting the growth of the Air India Group, which will have a significant presence across all key airline market segments post-merger.
Vistara CEO Vinod Kannan emphasised that the merger aims to enhance passenger choice with a larger fleet and expanded network, improving the overall travel experience.
The Tata-owned Air India Group currently includes Air India, Air India Express, AIX Connect (formerly AirAsia India), and Vistara.
As part of Tata's consolidation of its airline business, AIX Connect is also merging with Air India Express. The FDI approval represents a key milestone in the merger and the broader transformation of the Air India Group.
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