Vistara and Air India Merger Gets Green Light from Indian Government - Written by Bisjhintus Team

 

The long-awaited merger between Vistara and Air India has taken a significant step forward after Singapore Airlines (SIA) received the Indian government’s approval for foreign direct investment (FDI). The merger, which is set to reshape the Indian aviation industry, will see Vistara fully integrated into Air India by November 2024.

SIA, which currently holds a 49% stake in Vistara, will obtain a 25.1% stake in the newly merged entity, while the Tata Group, the owners of Air India, will retain the remaining 74.9% stake. This merger is part of a broader strategy by the Tata Group to consolidate its aviation assets and create a stronger, more competitive airline in the global market.

Starting from September 3, 2024, customers will no longer be able to book flights with Vistara for travel after November 12, 2024. However, passengers who have already booked flights with Vistara for dates after November 12 will see their bookings automatically transferred to Air India, with flight numbers changing but schedules and aircraft remaining largely the same.

Campbell Wilson, Air India’s CEO, welcomed the government’s approval, stating that it clears the way for the final steps in the merger process. He reassured customers that both airlines would ensure a seamless transition, with consistent communication and support provided throughout.

Currently, Vistara operates a fleet of 70 aircraft, while Air India’s fleet consists of 140 aircraft. The combined fleet will strengthen Air India’s position in both domestic and international markets. The transition of aircraft and crew from Vistara to Air India is scheduled to begin on November 12, 2024, with no expected disruptions for customers during this period.

 

Conclusion: The merger of Vistara with Air India marks a significant milestone in the Indian aviation industry. With government approvals in place, the two airlines are set to combine their strengths, offering enhanced services to passengers and solidifying Air India’s position as a leading global airline.