The merger of Air India-Vistara Airlines has been approved by the Competition Commission of India (CCI) on Friday (September 1). After the merger of Vistaar, Air India has now become the second largest domestic airline and the largest international airline in the country. The process of this merger will be completed by 2024.
CCI has also approved the purchase of stake in Air India by Singapore Airlines. However, this approval has been given with some conditions. Vistaar is also known as Tata SIA Airlines, as it is a joint venture between Tata Sons and Singapore Airlines.
CCI's approval was sought for the proposed merger in April this year. Tata Sons Private Limited (TSPL), Air India Limited, Tata SIA Airlines Limited (TSAL) and Singapore Airlines Limited have been made parties.
Tata Sons holds 51% and Singapore Airlines 49% in Vistara. Tata Group had announced Vistara's merger with Air India in a deal in November last year. Under the deal, Singapore Airlines will also acquire 25.1% stake in Air India.
The merger of Air India and Vistara Airlines will be completed by 2024. Tata will hold 74.9% stake and Singapore Airlines (SIA) will hold 25.1% stake in the new firm. The name of the new firm will be AI-Vistara-AI Express-AirAsia India Private Limited (AAIPL), Tata Sons and SIA had announced this in December last year. Then he had said that the target has been set to complete the merger process by 2024.
Air India (including Air India Express and Air Asia India) and Vistara have a total of 218 widebody and narrowbody aircraft, serving 38 international and 52 domestic destinations. Vistara is a 51:49 joint venture between Tata Sons and Singapore Airlines Limited.
It was established in 2013 and is India's leading full service carrier with international operations in the Middle East, Asia and Europe. Following the merger, Air India will be the only Indian airline group to operate both full-service and low-cost passenger services. India's aviation market is currently the third largest market in the world. It is expected to double in the next 10 years.
Four months ago, Air India entered into an interline partnership with Vistara Airlines. Under this partnership, boarding passes for the entire journey will be available for both the airlines at the first point of departure. You will also be able to check-in your baggage at the first point itself.
Apart from this, in case of flight delay, cancellation and diversion, both the airlines will be able to use each other's flights. Means Air India passengers can be transferred to Vistara and Vistara passengers can be transferred to Air India flight.
