“Vistara shall be merged with Air India post receipt of requisite approvals. As part of the merger transaction, SIA shall also invest ₹ 2,059 crore in Air India. Post the consolidation, SIA shall hold 25.1% shareholding in Air India." the official statement read.
The official statement released said that the proposed deal is expected to be complete by March 2024, subject to regulatory approvals.
Four airlines are part of the Tata group. They are Air India, Air India Express, AirAsia India and Vistara. Tata group acquired Air India and Air India Express in January this year.
The Tata group in a separate release informed that with the consolidation, Air India would be the country's leading domestic and international carrier with a combined fleet of 218 aircraft, "making it India's largest international carrier and second largest domestic carrier".
Tata Sons Chairman N Chandrasekaran said the merger of Vistara and Air India is an important milestone in the journey to make Air India a truly world-class airline.
In the official statement, Tata group chairman, N. Chandrasekharan 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 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. We are excited with 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."
"Air India, an airline fully owned by Tata Sons, has been the flag carrier of India. Tata Sons, via its fully owned subsidiary, Talace Private Limited (“Talace)", had acquired 100% stake in Air India on 27th January 2022.
Vistara, a 51:49 Joint Venture between Tata Sons and Singapore Airlines Limited (“SIA") was established in 2013 and is India's leading full-service carrier with international operations in Middle East, Asia and Europe." the official statement read.
Vistara started flying in January 2015. AirAsia India was launched in 2014, while Air India Express began operations back in 2005.
