In a significant development toward forming one of the world’s largest airline groups, Singapore Airlines announced on Friday that it has secured approval from the Indian government for the foreign direct investment (FDI) necessary for the proposed merger of Vistara with Air India. This approval allows Singapore Airlines to acquire a 25.1% stake in Air India, with the merger expected to be finalized by the end of the year. Initially announced in November 2022, this merger will create a major player in the global aviation industry.
Air India, currently owned by Tata Group, and Vistara, a joint venture between Tata and Singapore Airlines with a 51:49 partnership, will combine their assets to enhance competitiveness. In a regulatory filing, Singapore Airlines highlighted that this FDI approval, alongside other antitrust and regulatory clearances, marks a significant step forward in completing the merger. The finalization, however, is contingent on compliance with Indian laws and is anticipated to be completed by the end of 2024.
Singapore Airlines mentioned ongoing discussions to possibly extend the long stop date for the merger, which was initially set for October 31, 2024. Singapore’s Competition and Consumer Commission granted conditional approval for the merger in March, followed by the Competition Commission of India’s approval in September 2023.
