The Tata group and Singapore Airlines (SIA) announced on Tuesday that they had agreed to merge Vistara with Air India to drive synergies and grab market share in the fast-growing aviation market.
After the merger, brand Vistara will cease to exist and Air India will become India's second largest domestic and largest international carrier, with a fleet of 218 aircraft.
This is the Tata group's second consolidation exercise in the sector after it initiated the merger of AirAsia India with Air India Express earlier this year.
As part of the deal, and in lieu of its 49 per cent stake in Vistara and fresh investment of ₹2,059 crore in the merged entity, SIA will receive 25.1 per cent stake in the enlarged Air India, the rest will be held by the Tata group. The transaction is expected to be complete by March 2024 and will give SIA board representation in the airline.
SIA and the Tata group have also agreed to participate in additional capital injections during FY23 and FY24 that might be required to fund the growth and operations of the enlarged Air India.
This story is from the November 30, 2022 edition of Business Standard.
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This story is from the November 30, 2022 edition of Business Standard.
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