Vistara To Be Merged With Tata Air India, 25.1 Percent Stake With Singapore Airlines
Mumbai, 29th November 2022: Singapore Airlines on Tuesday said Vistara will be merged with Tata Group-owned Air India. The Tata group holds a 51 percent stake in Vistara, and the remaining 49 percent is held by Singapore Airlines (SIA). As part of the transaction, Singapore Airlines will also invest Rs 2,058.5 crores in Air India.
This deal will give SIA a 25.1 percent stake in the Air India group, Singapore Airlines said in a release. SIA and Tata aim to complete the merger by March 2024. Singapore Airlines has said in its statement that this agreement has been done by following all the rules and procedures. Given Tata’s presence in the market, this tie-up is very important for both.
In a separate release, the Tata group said that post-integration, Air India will be the country’s leading domestic and international carrier with a combined fleet of 218 aircraft. In this capacity, Tata will become India’s largest international carrier and second-largest domestic carrier. SIA and Tata Sons have also agreed to raise additional capital for the growth of Air India in FY 2022-23 and FY 2023-24.
