Air India-Vistara merger awaits FDI, other approvals: SIA

NEW DELHI: Air India-Vistara merger will strengthen Singapore International Airlines’ (SIA) multi-hub strategy and allow it to continue participating directly in the fast-growing aviation market, said SIA on Wednesday while announcing its March quarter results. SIA added that the merger is pending foreign direct investment and other regulatory approvals

“Once completed, it will give SIA a 25.1% stake in an enlarged Air India Group with a major presence in all key Indian airline market segments, including domestic, international, full-service, and low-cost. This will strengthen SIA’s multi-hub strategy, and allow the Group to continue participating directly in this large and fast-growing aviation market,” said SIA.

Vistara is a joint venture between Singapore Airlines and Tatas, which also owns Air India. The merger, announced in November 2022, was approved by the Competition and Consumer Commission of Singapore in March. In September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.

Earlier this week, Air India CEO Campbell Wilson and Vistara CEO/chief integration officer Vinod Kannan highlighted the ongoing integration process between the two airlines and said that the merger is expected to get completed by the end of this year or early 2025. SIA posted a 24% rise in net profit at 2,675 million Singapore dollars for FY24, helped by robust air travel demand.