Vistara-Air India merger
Vistara-Air India merger is a merger of Vistara, a 51:49 percent joint venture between Tata Sons and Air India and, an Indian Government operated airlines for 69 years. Both the airlines possess majority in market share among the direct flights operating between the International and domestic markets on the routes operating between Singapore and Indian cities of New Delhi, Mumbai,Chennai and Tiruchirapalli. The deal makes Air India, as India's top International carrier and second after Indigo for domestic operations.
Background[edit]
Vistara, a 51:49 percent Joint venture between Singapore Airlines and Tata Sons (Tata Singapore Airlines Limited) having started operations in 2015, [1] and Air India, a Government owned Indian airline for 69 years, [2] has announced the merger with brand change being effective after Year 2025. [3] The deal will make Air India, India's top International flight carrier. [4]
Terms of Deal[edit]
Vistara-Air India merger, which was announced in November 2022, with an understanding that the Singapore airlines will purchase 25.1 percent stake with Rs 2,059 Crores [5] in Air India. [6] After the deal the Tata Group will have 74.9 percent while the Singapore airlines will hold 25.1 percent in the new company. [7]
Challenges[edit]
The Vistara-Air India merger has created flight operation challenges in the former, resulting in delays and cancellations of flights to major destinations due to pilot shortages. [8]
Singapore Approvals[edit]
Vistara-Air India merger received conditional approval of Competition and Consumer Commission, a regulatory authority of Singapore Government. [9] [10]
Legal Approvals[edit]
Vistara-Air India merger was approved by Competition Commission of India in September 2023, [11] however regulatory approvals from National Company Law Tribunal (NCLT), Civil Aviation ministry, and Department for Promotion of Industry and Internal Trade are planned to be completed by the middle of Year 2024. [12] [13]
See Also[edit]
References[edit]
- ^ "Air India-Vistara merger deal gets CCI approval with caveats". CNBCTV18. 1 September 2023. Retrieved 2 April 2024.
- ^ "Vistara-Air India merger: What you need to know about Tata Group's big aviation deal". Zee Business. 18 July 2023. Retrieved 2 April 2024.
- ^ "Vistara-Air India merger: What should we expect?". The Times of India. 2 April 2024. Retrieved 2 April 2024.
- ^ "Air India-Vistara merger deal gets CCI approval with caveats". CNBCTV18. 1 September 2023. Retrieved 2 April 2024.
- ^ "Vistara-Air India merger gets CCI approval; check shareholding, other details". mint. 1 September 2023. Retrieved 2 April 2024.
- ^ "Air India merger: Vistara expects all legal approvals in first half of 2024". The Economic Times. 8 January 2024. Retrieved 2 April 2024.
- ^ "Air India-Vistara merger gets Singapore's conditional approval". reuters.com. 5 March 2024. Retrieved 2 April 2024.
- ^ "Pre-merger turbulence forces Vistara to cancel 50 flights, may hit 60 today". The Times of India. 2 April 2024. Retrieved 2 April 2024.
- ^ "Air India, Vistara merger receives Singapore's conditional approval". business-standard.com. 5 March 2024. Retrieved 2 April 2024.
- ^ "Vistara-Air India merger: Singapore's competition watchdog gives conditional approval to deal". Business Today. 5 March 2024. Retrieved 2 April 2024.
- ^ Chandra, Jagriti (1 September 2023). "CCI approves Vistara-Air India merger". The Hindu. Retrieved 2 April 2024.
- ^ Vijayaraghavan, Kala; Majumder, Arindam (3 February 2024). "Air India, Vistara boards may not be unified soon". The Economic Times. Retrieved 2 April 2024.
- ^ "Air India-Vistara merger in progress; awaiting regulatory approvals: Singapore Airlines". The Indian Express. 20 February 2024. Retrieved 2 April 2024.