Tata Group to merge Air India with Vistara by 2024 as part of key deal

SINGAPORE AIRLINES TO HOLD 25.1% STAKE IN THE MERGED ENTITY

Highlights

• In a release, SIA said Vistara and Air India would be merged, and it would also be investing Rs 2,058.5 crore in Air India as part of the transaction
• SIA said it intends to fully fund this investment with its internal cash resources, which stood at 17.5 billion Singapore dollars as of September 30
• Tata Sons Chairman N Chandrasekaran said the merger of Vistara and Air India is an important milestone in the journey to make Air India a truly world-class airline 

NEW DELHI: In a major consolidation in the Indian aviation space, Tata Group on Tuesday announced the merger of Vistara with Air India, and pursuant to the

India, and pursuant to the deal, Singapore Airlines will have a 25.1 per cent stake in Air India.

The proposed deal is expected to be complete by March 2024, subject to regulatory approvals.

Tata Group owns a 51 per cent stake in Vistara and the rest is with Singapore Airlines (SIA).

In a release, SIA said Vistara and Air India would be merged, and it would also be investing Rs 2,058.5 crore in Air India as part of the transaction.

“This would give SIA a 25.1 per cent stake in an enlarged per cent stake in an enlarged Air India Group with a significant presence in all key market segments.”