On Thursday, an Indian company tribunal approved the merger of full-service carriers Vistara and Air India, according to an order dated June 6. This approval brings the Tata group airlines closer to finalizing the deal.
Initially announced in November 2022, the merger will see Vistara, which is 49% owned by Singapore Airlines, being absorbed into Air India. As a result, Singapore Airlines will hold a 25.1% stake in the merged entity.
“The ‘Composite Scheme of Arrangement’ among the petitioner companies and their respective shareholders is hereby sanctioned,” stated the National Company Law Tribunal (NCLT) in its order. The NCLT has mandated that Air India complete the merger within nine months.
Antitrust regulators in both India and Singapore have approved the deal. Air India CEO Campbell Wilson indicated earlier this week that the merger is expected to be finalized by the end of the year.
The Air India group, which also includes low-cost carriers Air India Express and Air Asia India, has placed an order for 470 jets from Airbus and Boeing. This strategic move aims to compete with local rivals such as IndiGo and Middle Eastern carriers that dominate outbound traffic from India.
