Singapore Airlines Wins India Approval for Air India-Vistara Merger

A Vistara passenger aircraft taxis on the tarmac at Chhatrapati Shivaji International Airport in Mumbai, India, May 29, 2023. REUTERS/Francis Mascarenhas/File photo

Asif Iqbal | August 30, 2024 | 11:18 AM IST | World | Follow on Google News

Singapore Airlines Wins India Approval for Air India-Vistara Merger

Singapore Airlines Wins India Approval for Air India-Vistara Merger

Singapore Airlines (SIAL.SI), opens new tab has received Indian government approval for foreign direct investment, clearing a significant hurdle in the merger of airline Vistara, its 49%-owned joint venture with Tata Group, into Air India, it said on Friday.

Singapore’s flagship carrier announced a plan to merge the decade-old Vistara and Tata-owned Air India in November 2022, in a bid to create a dominant full-service airline in the domestic and international markets.

India is among the world’s fastest-growing major aviation markets. Global airlines are expanding flights to the country and Indian airlines last year placed record orders for hundreds of new planes.

Singapore Airlines said it expected the deal, which Indian and Singaporean antitrust regulators have cleared, to be completed by the end of 2024.

That is delayed from the original target of March, and the airline said the companies were in talks about an extension to the agreed stop date of Oct. 31.

Singapore Airlines, which is the only foreign airline with a direct stake in an Indian carrier, will hold a 25.1% stake in the combined Air India group in return for a $250 million investment.

The Singaporean company is due to invest up to S$880 million ($675.42 million) after the merger is completed.

India’s Tata took over flag carrier Air India in 2022 and embarked on a multi-million dollar transformation of the former state-run airline.

($1 = 1.3029 Singapore dollars)

(Except for the headline, this story has not been edited by VoM News staff and is published from Reuters)

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.