Air India to merger with Vistara by March 2024

The Tata Group announced the consolidation of its airlines - Vistara and Air India. Vistara will merge with Air India after all the requisite approvals come in. Air India will be the country’s leading domestic and international carrier with a combined fleet of 218 aircraft and India’s largest international carrier and second-largest domestic carrier, the group said in a statement. As part of the merger transaction, SIA will invest Rs 2,059 crore in Air India and following the consolidation, SIA will hold a 25.1 per cent shareholding in Air India, it added.

Singapore Airlines Ltd (SIA) on Tuesday also said it would emerge as a 25.1% owner of Air India as part of a deal that would merge its Vistara full-service airline joint venture with Tata Sons into India's national carrier.  the Singaporean carrier said in a statement, with the pair aiming to complete the merger by March 2024 subject to regulatory approvals. It will also allow the Indian conglomerate to consolidate its brands around full-service Air India and low-cost Air India Express, which is being merged with AirAsia India after Tata bought out former partner AirAsia.SIA has a 49% stake in Tata SIA Airlines, which operates Vistara, while the Indian conglomerate owns the rest.

“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, enhancing safety, reliability, and on-time performance,” N Chandrasekaran, the chairman of Tata Sons, said in a statement.