New Delhi: The Tata Group has announced on Tuesday that the airline Vistara, a partnership of Singapore Airlines, will be merged with Air India. On the other hand, Singapore Airlines also said on Tuesday that its partnered airline Vistara would be merged with Tata Group's Air India. The Tata Group has a 51 percent stake in Vistara. The remaining 49 percent stake is held by Singapore Airlines (SIA). Under this merger deal, SIA will also invest Rs 2,058.5 crore in Air India.
In a statement issued by Singapore Airlines, it was said that with this deal, SIA's stake in Air India, which has a good presence in all major markets, will increase to 25.1 percent. SIA and Tata aim to complete the merger by March 2024. It also depends on regulatory approvals.
According to media reports, Tata Group on Tuesday announced the merger of its airlines Vistara and Air India by March 2024. Tata Sons' partner company Singapore Airlines Limited said that the two airlines would merge. For this, the board has approved the deal. Vistara is a joint venture between Tata Sons Private Limited and Singapore Airlines Limited (SIA).
Tata SIA Airlines Limited is registered as a Company. As part of the deal, Singapore Airlines will also invest $250 million in Air India. The statement issued by the company said that this will give SIA a 25.1 per cent stake in Air India, which has a significant presence in all major markets. Through this merger, Singapore Airlines will acquire a stake in an entity four to five times larger than Vistara. This will strengthen its presence in India's large and fast growing aviation market.