Vistara Airlines of Singapore will be merged with Air India. The merger is expected to be completed by March 2024 subject to regulatory approvals, said a joint release issued today by Tata Sons and Singapore Airlines.
Tata Sons will hold around 75 per cent and Singapore Airlines will hold 25 per cent stake in the new company. As part of the merger process, Vistara Airlines will invest Rs 2,000 crore in Air India.
With the arrival of Vistara, there will be a significant increase in the number of aircraft and flights of Air India, which is expected to reduce the fares of its domestic and international flights.
Tata Group said in a press release that after this merger, Air India will become the country’s leading domestic and international airline with 218 aircrafts. With this merger, Air India will become India’s largest international airline. Also, it will become the second largest domestic airline in the country.
