Tata Group to consolidate Air India and Vistara

The transaction is expected to be completed by March 2024.

MUMBAI, INDIA – The Tata Group announced the consolidation of its airlines, Vistara and Air India. With this consolidation, Air India will be India’s leading domestic and international carrier with a combined fleet of 218 aircraft, making it India’s largest international carrier and second largest domestic carrier.

Air India, an airline wholly owned by Tata Sons, was the flag carrier of India. Tata Sons, through its wholly owned subsidiary, Talace Private Limited (“Talace)”, acquired 100% stake in Air India on 27 January 2022.

Vistara, a joint venture 51:49 between Dad Sons and Singapore Airlines Limited (“SIA”) was established in 2013 and is India’s leading full-service operator with international operations in the Middle East, Asia and Europe.

Vistara will be merged with Air India after receiving necessary approvals. As part of the merger deal, SIA will also invest Rs 2,059 crore in Air India. After the consolidation, SIA will hold 25.1% stake in Air India.

The transaction is expected to be completed by March 2024.

On this occasion, Mr. N ChandrasekaranChairman, Tata Sons said: “The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline. We are transforming Air India with the aim of delivering a great customer experience, every time, for every customer. As part of the transformation, Air India is focusing on growing both its network and fleet, revamping the customer proposition, enhancing safety, reliability and on-time performance. We are excited about the opportunity to create a strong Air India offering both service and low-cost services on domestic and international routes. We would like to thank Singapore Airlines for their continued partnership.”

Mr. Goh Choon Phong, The chief executive of Singapore Airlines said: “Tata Sons is one of the most established and respected names in India. Our collaboration to establish Vistara in 2013 has resulted in a market-leading full-service carrier that has won many global awards in a short span of time. With this merger, we have the opportunity to deepen our relationship with Tata and participate directly in an exciting new phase of growth in the Indian aviation market. We will work together to support Air India’s transformation programme, unlock its significant potential and restore its position as a leading airline on the global stage.”

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