Air India and Vistara to merge

30 Nov 2022 , 06:36 AM

To create synergies and increase market share in the rapidly expanding aviation business, the Tata Group and Singapore Airlines (SIA) announced their agreement to integrate Vistara and Air India.

With a fleet of 218 aircraft, Air India will replace Vistara as the country’s second-largest domestic and international airline after the merger.

After initiating the merger of AirAsia India and Air India Express earlier this year, this is the second sector-wide consolidation drive for the Tata group.

As part of the agreement, SIA would spend Rs 2,059 crore for a 25.1% stake in Air India’s enhanced share capital; the Tata group will hold the remaining shares. The deal will offer SIA board participation in the airline and is anticipated to close in March 2024.