Competition Commission Gives Green Light to Air India and Vistara Merger

The Competition Commission of India (CCI) has given its nod to the proposed merger of Air India and Vistara, subject to certain conditions. This development marks a major step forward for the Tata Group in consolidating its presence in the aviation sector.

CCI’s Approval

In a statement posted on platform X, the CCI stated, “CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties.”

Both Vistara and Air India are renowned full-service carriers that operate under the Tata Group umbrella. Singapore Airlines holds a 49% stake in Vistara. The merger, announced by Tata Group in November of the previous year, also involves Singapore Airlines acquiring a 25.1% stake in Air India. This strategic move is set to bring about a substantial consolidation in India’s rapidly growing aviation industry.

The Regulatory Process

The request for approval of the proposed combination was submitted to the CCI in April of this year. In June, the CCI requested additional details regarding the merger. The entities involved in this merger include Tata Sons Pvt Ltd (TSPL), Air India Ltd, Tata SIA Airlines Ltd (TSAL), and Singapore Airlines Ltd.

Once the merger concludes, Singapore Airlines will be allocated additional shares in the merged entity through a preferential allotment. This deal positions Air India as the country’s largest international carrier and the second-largest domestic carrier. It’s worth noting that Air India Express and AIX Connect (formerly known as AirAsia India) are also in the process of merging.

“CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties.”

This significant development in India’s aviation industry showcases Tata Group’s commitment to strengthening its presence in this sector. With the approval of the Competition Commission, the merger of Air India and Vistara moves one step closer to becoming a reality.

Conclusion

The merger of Air India and Vistara, along with the involvement of Singapore Airlines, promises to reshape the landscape of India’s aviation industry. As the regulatory process advances, all eyes will be on this transformative deal and its potential impact on the country’s air travel landscape.

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