Guwahati: The Tata Group on Tuesday announced the merger of its two airlines Vistara and Air India. With this merger, Air India will have a combined fleet of 218 aircraft, making it India’s largest international airline and second-largest domestic airline. Air India will be the country’s premier domestic and international carrier.
Vistara and Air India will merge after all necessary approvals have been received. SIA would also contribute Rs 2,059 crore to Air India in connection with the merger. SIA will own 25.1% of the shares of Air India following the consolidation. The transaction is anticipated to be finished by March 2024.
India’s national airline is Air India, which is wholly owned by Tata Sons. On January 27, 2022, Tata Sons, through its fully-owned subsidiary Talace Private Limited or Talace, acquired a 100% share in Air India.
India’s top full-service airline, Vistara, was founded in 2013 and is a 51:49 joint venture between Tata Sons and Singapore Airlines Limited (SIA). It has international operations in the Middle East, Asia, and Europe.
Tata Sons Chairman N Chandrasekaran said the following on this occasion: “In our quest to transform Air India into a truly world-class airline, the merger of Vistara with Air India is a significant turning point. With the goal of giving each and every customer a fantastic customer experience, we are reinventing Air India. Air India is concentrating on expanding both its network and fleet as part of the transition, reworking its customer pitch, and improving safety, dependability, and on-time performance.”
The Chairman added, “The possibility of building a robust Air India that would provide full-service and affordable service on both domestic and international routes excites us. We appreciate Singapore Airlines’ continuous support and would want to thank them.”
Chief Executive Officer of Singapore Airlines Goh Choon Phong said: “One of India’s most well-known and esteemed brands is Tata Sons. Our joint efforts to establish Vistara in 2013 produced a market-leading full-service carrier that has quickly garnered numerous awards on a global scale.”
“With this combination, we have the chance to strengthen our bond with Tata and actively take part in the aviation market’s exciting new growth phase in India. Together, we will support Air India’s transformation programme, realise the airline’s enormous potential, and put it back in the position of a premier airline on the international scene “said the CEO.