Vistara: Vistara’s journey ends in India, Singapore Airlines announces merger with Air India

Photo: File Vistara Airlines

A big announcement has been made by the airlines industry of India. Singapore Airlines has announced the merger of Vistara Airlines with Tata Group’s Air India. The Tata Group holds 51 per cent stake in Vistara Airlines. The remaining 49 per cent stake is held by Singapore Airlines (SIA). Under this merger deal, SIA will also invest Rs 2,058.5 crore in Air India.

Earlier, there was news of the merger of four strategic airlines of the Tata group, including Vistara, Air Asia and Air India Express, with Air India. Today the first announcement in this process has come out. Singapore Airlines said in a release, “The transaction will take SIA’s stake in Air India, which has a strong presence in all major markets, to 25.1 percent. SIA and Tata aim to complete the merger by March 2024. It also depends on regulatory approvals.

Vistara’s journey will end

Vistara Airlines made its first flight in India on 9 January 2015 under a tie-up with Tata and Singapore Airlines. As of May 2019, the company had a market share of 4.7 per cent in the Indian aviation market. According to company sources, talks are on in this regard, with Singapore Airlines evaluating the stake size in the combined entity.

Why Tata is taking this step

The Tata group is considering a plan to integrate its airline brands under Air India Limited. Tata Sons took management control in January after buying Air India. Since then, he had started the process of integrating all four of his airlines. Under this process, Air India, Air India Express, Vistara, Air Asia India and ground handling firm AISATS will operate from a single office.

100% stake in Air India

Recently 100% stake of Air Asia India has now come to Tata Group. Tata currently held 83.67% stake in Air Asia India. In December 2020, he increased his stake in Air Asia India. The remaining stake was held by Malaysian airline group Air Asia. Air Asia India operates under the brand name ‘Air Asia’.

Tata gave the biggest order

Tata is currently looking to place an order for over 300 narrow-body jets. This will be the biggest aviation order in Indian history. Air India chief executive Campbell Wilson had said last month that the airline would triple its fleet of 113 aircraft in five years. The airline plans to induct 25 Airbus SE and five Boeing Co aircraft.

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