The Tata Group announced the consolidation of its airlines - Vistara and Air India
The Tata Group announced the consolidation of its airlines - Vistara and Air India. Air India will be the country’s leading domestic and international carrier with a combined fleet of 218 aircraft and India’s largest international carrier and second-largest domestic carrier, the group said in a statement.
Vistara will merge with Air India after all the requisite approvals come in, the company said. As part of the merger transaction, SIA will invest Rs 2,059 crore in Air India and following the consolidation, SIA will hold a 25.1 per cent shareholding in Air India, it added.
The transaction is estimated to be completed by March 2024.
“The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline. We are transforming Air India, with the aim of providing a great customer experience, every time, for every customer. As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performanceN Chandrasekaran, the chairman of Tata Sons, said in a statement.
We are excited about the opportunity of creating a strong Air India which would offer both full-service and low-cost service across domestic and international routeshe added.
“Tata Sons is one of the most established and respected names in India. Our collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier which has won many global accolades in a short time. With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market. We will work together to support Air India’s transformation program, unlock its significant potential, and restore it to its position as a leading airline on the global stage,” Goh Choon Phong, the Chief Executive Officer of Singapore Airlines, said.
Tata Sons acquired a 100 per cent stake in Air India on January 27, 2022, through its fully-owned subsidiary, Talace Private Limited.
Vistara, which is a 51-49 joint venture between Tata Sons and Singapore Airlines, is a full-service carrier with international operations to the Middle East, Asia and Europe.