Tata Sons will hold 73.38 per cent stake, while Singapore Airlines will hold 25.1 per cent in the newly merged Air India-Vistara entity
Tata Group’s Air India-Vistara has kicked off its first national and international flights as the merged entity started its operations on November 12. The first international flight with the code ‘AI2286’ took off on Tuesday from Doha to Mumbai, while nationally, the flight with code ‘AI2984’ departed from Mumbai to Delhi.
Earlier, Singapore Airlines announced investment worth Rs 3,194.5 crore in Tata Group-owned Air India-Vistara. The merger consideration for SIA includes its 49 per cent stake in Vistara along with Rs 2,058.5 crore in cash, in exchange for a 25.1 per cent equity interest in the merged entity.
The Air India-Vistara merger is a significant development in the Indian airline industry, as it is one of the most complex mergers in aviation history. The two airlines announced the merger in November 2022 and followed by complex and nine-month long dissolution of Vistara, the two entities merged.
Vistara was a joint venture of Air India and Singapore Airlines and began its operations in full swing in 2015.
“Over the past two years, the four tata airlines have worked hard to prepare for and execute one of the most complex mergers in aviation history, consolidating from four airlines to two in the context of dramatic growth and wholesale transformation,” said CEO and MD Air India Campbell Wilson in a meeting on November 8.
Ahead of the merger on November 8, Air India announced significant changes to key positions. Vinod Kannan, who was the chief executive officer of Vistara, will now hold the position of chief integration officer for the full-service airlines’ merger. Additionally, he will also be a member of the management committee and report directly to Air India CEO Campbell Wilson.
Deepak Rajawat, chief commercial officer of Vistara, will now be chief financial officer of the merged entity.
“Consolidating from four airlines to two in the context of dramatic growth and wholesale transformation. As we now approach the end of that process, we are delighted to formalise a Group leadership comprising colleagues from all four antecedent airlines to drive the next phase of our journey,” said Wilson.