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Tatas and Singapore Airlines plan to merge Air India and Vistara; SIA to hold 25.1% stake of new AI

Singapore Airlines (SIA) and Tata Sons (Tata) are set to merge airline Vistara and national carrier Air India by March 2024, following board approval of the merger on Tuesday.

By wasmulhaq 
Updated Date

Mumbai: Singapore Airlines (SIA) and Tata Sons (Tata) are set to merge airline Vistara and national carrier Air India by March 2024, following board approval of the merger on Tuesday.

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The Singaporean airline announced in a statement that it will become a 25.1% stakeholder in the airline, as part of a plan to integrate its Vistara joint venture with Tata Sons into Air India.

According to Singapore Airlines, as part of the deal, SIA would contribute $250 million to Air India. Subject to regulatory approvals, the merger is expected to be finalised by March 2024.

Additionally, Singapore Airlines and Tata have agreed to take part in future financial infusions that may be necessary to finance the expansion and operations of the larger Air India in the fiscal years 2022–2023 and 2023–2024.

Through this deal, SIA will strengthen its relationship with Tata and gain an instant strategic position in a company that is four to five times bigger than Vistara in terms of size.

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The merger would increase SIA’s footprint in India, strengthen its multi-hub strategy, and enable it to compete in the growing aviation market.

The chief executive of Singapore Airlines, Goh Choon Phong, stated that one of the most respected names in India is Tata Sons. Our collaboration to establish Vistara in 2013 resulted in leading airlines receiving multiple awards in a short period of time. The merger will deepen our relationship with Tata.

 

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