Vistara-Air India Merger: Singapore Airlines has received approval from the Indian government for foreign direct investment (FDI) as part of Vistara’s proposed merger with Air India.
Vistara-Air India merger: This is important news for air travelers. After September 3, passengers will not be able to book Vistara flights. This is because very soon the proposed merger of Vistara, an airline formed from the joint venture of Air India and Singapore Airlines, is going to be completed. Singapore Airlines said on Friday that it has received approval from the Indian government for Foreign Direct Investment (FDI) for the proposed merger. Let us tell you that Singapore Airlines has a 49% stake in Vistara and after the merger it will get 25.1% stake in Air India. Tata will have a 74.9% stake in the airline.
What did the airline say?
According to the company’s statement, Vistara will gradually reduce the booking of passenger tickets from September 3 and will not accept any bookings on or after November 12. The airline said that all Vistara aircraft will be integrated into Air India’s operations and bookings for routes currently operated by it will be redirected to the Air India website. Vistara will continue to take bookings and operate flights as normal until November 11, 2024. The company said that the flight number for Vistara flights on or after November 12, 2024 will also be changed to Air India code.
Air India CEO Campbell Wilson has sent an internal email to his employees, a copy of which has also been read by Hindustan Times. It says, ‘After November 12, all customers’ reservations already booked on Vistara flights will be automatically converted to Air India flight numbers. This will be done phase wise in the month of September and customers will also be informed personally.’ He said, ‘HR teams are working on the transfer of our Vistara colleagues who have not yet been sent to Air India. Along with those who are already in Air India, we are ready to welcome our new Air Indians, make them feel at home and move forward with them.’ Let us tell you that the merger process of Air India and Vistara is in the final phase and this deal is expected to form one of the largest airline groups in the world.
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The announcement was made in November 2022
This proposed merger was announced in November 2022. Air India is owned by the Tata Group and Vistara is a 51:49 joint venture between Tata and Singapore Airlines. Singapore Airlines (SIA) said in a notice to the Singapore Stock Exchange on Friday that it has received approval from the Government of India for foreign direct investment (FDI) as part of Vistara’s proposed merger with Air India.
What did the company say?
The airline company said that the completion of the merger is subject to compliance with applicable Indian laws by the concerned parties. It is expected to be completed in the next few months. According to the company information, “The proposed merger is expected to be completed by the end of 2024.” This merger will form one of the largest airline groups. It was approved by the National Company Law Appellate Tribunal (NCLT) in June.
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