It has been talked about in the aviation world for some time now, however now it’s official. Vistara and Air India will merge into one company. Let’s take a closer look at what the news is all about and when the merger will be completed.
About The Air India Vistara Merger
Earlier this year TATA took over Air India, the company already controlling Vistara. Following this acquisition plans for the merger of the 2 owned airlines were inevitable.
Vistara and Air India are the country’s largest full service carriers. These two airlines joining forces will create the largest and most important airline in India.
The new widened Air India Group will be the only Indian carrier to operate in all sectors: regional flights, low cost (budget), full service.
TATA, the common parent company of Air India and Vistara, plans to complete the merger by March 2024. That said, TATA is not on its own on this endeavour.
Singapore Airlines’ Role in The Merger
Singapore Airlines was for Vistara, from its founding in 2013, a strategic partner and investor in the company. The Singaporean flag carrier until today holds a 49% stake in Vistara.
Singapore Airlines will confirm this position and partnership with TATA even once the new Air India is formed. SIA will hold 25% of the new airline group confirming its investment.
If required after the merger process is complete Singapore Airlines will participate in further capital injections to fuel growth. Clearly in proportion to its 25% presence in the company which would translate to USD$880.
A Super Fleet
The new company will operate a giant fleet of aircraft comprising of narrow bodies, regional and wide bodies. All together the new flag carrier group will have 218 planes to fly to its 38 international and 52 domestic destinations.
We’ll have further updates to comment and analyse as the merger moves forward in the coming year and a half. Make sure to come back for the latest updates.
