The much-awaited merger proposed between Air India and Vistara has been given the green light by the Indian government's Foreign Direct Investment (FDI) as per media reports.
As per Mint, the merger will pave the way for Singapore Airlines' investment worth Rs 2,059 crore. This will see the creation of one of the world's largest airline groups.
Singapore Airlines in its regulatory filings reportedly 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."
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Singapore Airlines said that the merger's completion remains contingent on the parties adhering to relevant Indian regulations, with all finalisation anticipated in the coming months.
The two airlines reportedly finalised their merger plan in November 2022. Tata Group owns Air India and runs Vistara as a 51:39 joint venture with Singapore Airlines
The proposed deal between Singapore Airlines and Tata-owned Air India is said to be completed by the end of this year. This will see Singapore Airlines acquire a 25.1 per cent stake in Air India.
In March, Singapore's competition regulator, Competition and Consumer Commission of Singapore (CCCS) gave the conditional nod for the proposed deal. Prior to this, in September 2023, it had also got approval from the Competition Commission of India (CCI).
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What's next for the customers?
With the move in place, customers will not be able to make bookings with Vistara for travel on or after November 12.
All the flights will reportedly be operated by Air India and bookings for them will be redirected to Air India's website from Vistara.
The schedules, aircraft and crewing for these flights will be largely maintained till early 2025.
Vinod Kannan, CEO of Vistara, said the merger will give the customers a wide range of offers and an enhanced travel experience.
"The integration is not just about merging fleets but also about merging values and commitments to providing the best service to our customers," Kannan said, reported India Today.
Campbell Wilson, CEO of Air India, stated that the merger would see a smooth integration of seamless services of staff and customer care.
He said, "Our teams are working closely to ensure that the transition is smooth and that our customers experience no disruption in service, reported India Today.
The Indian merger will enable Singapore Airlines to open greater avenues for one of the most promising travel industries in the country.
Tata took over flag carrier Air India in 2022 and embarked on a multi-million dollar transformation of the former state-run airline.
