AI to remain only full service carrier after Vistara merger

Since the merger of FSC Indian Airlines with Air India in 2007, at least five FSCs dotted the Indian skies

When Vistara folds up into the Air India Group on Monday, the number of full-service carriers in the fast-growing Indian aviation space will come down to just one from five in a span of over 17 years.

Also, the merger—that will see Vistara's 49 per cent owner Singapore Airlines holding 25.1 per cent stake in Air India post the merger—will mark the sunset of another Indian airline jointly owned by an overseas carrier after the liberalization of foreign direct investment norms.

In 2012, Prime Minister Manmohan Singh-led UPA government allowed foreign airlines to buy up to 49 per cent in a domestic carrier, which later resulted in the now defunct Jet Airways securing 24 per cent stake from Gulf carrier Etihad besides the birth of AirAsia India and Vistara.