Air India will start operating Vistara flights in the country from November 12 after all decks were cleared for the much-anticipated merger between the two Tata Group-owned airlines.
This follows a critical approval from the Indian government regarding Singapore Airlines’ foreign direct investment into the new Air India, including Vistara.
Singapore Airlines held 49 percent stake in Vistara, primarliy a domestic carrier with several international destinations, alongside Indian conglomerate and majority stakeholder, Tata Group.
Tatas started Vistara in 2015 and took over the state-run Air Inda in 2022. It currently operates 2,391 flights per week with 70 aircraft.
The major hurdle in the merger process has now been removed. Singapore Airlines, in a regulatory filing with the Singapore Stock Exchange, said: “The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to date, represent a significant development towards the completion of the proposed merger.”
On completing the proposed merger, Singapore Airlines will hold approximately 25.1 percent of the enlarged Air India.
In the filing, Singapore Airlines also stated that completion of the proposed merger continues to be subject to compliance by the parties with applicable Indian laws, which is “currently expected to be completed in the next few months. At this juncture, completion of the merger is anticipated to occur by the end of 2024.
“Accordingly, the parties are in discussions to extend the Long Stop Date (previously indicated as 31 October 2024 for completion of the merger) to accommodate the latest expected transaction completion date.”
According to a report in Reuters, the Singaporean company is due to invest up to 50.2 billion Indian rupees ($599 million) after the merger is completed.
In a statement, Vistara said it will not be possible to book with Vistara for travel on or after Nov. 12.
“All Vistara aircraft thereafter will be operated by Air India and bookings for the routes operated by these aircraft will be redirected to Air India’s website,” it added.
Air India welcomed the government’s approval for the FDI by Singapore Airlines, and Campbell Wilson, Air India CEO and MD, added: “Cross-functional teams from Air India and Vistara have been working together for many months to make the transition of aircraft, flying crew, ground-based colleagues and, most importantly, our valued customers, into the new Air India as seamless as possible.”
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