India has officially approved the final step for Air India Ltd.’s merger with its smaller competitor, Vistara, clearing the way for a $360 million investment by Singapore Airlines Ltd. This decision clears the way for the operational integration of the airlines, including their planes, staff, and routes.
Singapore Airlines, which co-owns Vistara with the Tata Group, will acquire a stake of approximately 25.1% in the newly enlarged Air India Group.
The consolidation will lead to the integration of planes, staff, and routes, enhancing Air India’s operational capacity and market reach. The deal will also provide Singapore Airlines with increased exposure to one of the world’s fastest-growing travel markets. It positions Singapore Airlines as the only foreign player with a substantial stake in an Indian airline.
The merger is set to be finalised on 12 November. From this date, travellers and customers will no longer be able to make bookings on or after this date. This consolidation comes amid other major airline transactions, including Alaska Air Group Inc. and Hawaiian Holdings Inc.'s $1.9 billion merger, and Korean Air’s $1.4 billion bid for Asiana Airlines Inc.
