New Delhi:
The proposed merger of Tata Group airline Air India and Singapore Airlines (SIA) joint venture airline Vistara will be completed soon. Singapore Airlines said on Friday that it has received approval from the Indian government for foreign direct investment (FDI) in Air India as part of this proposed merger.
Big step towards completion of merger: SIA
Singapore Airlines has said in a regulatory filing that the approval of FDI, anti-trust and merger control approvals, along with other government and regulatory approvals received so far, is a major step towards the completion of the proposed merger. Singapore Airlines (SIA) and Tata Group are discussing extending the merger deadline from October 31, 2024 to complete the deal.
This merger was announced in November 2022, after the completion of this deal, Singapore Airlines will have a 25.1% stake in Air India. Tata Sons will have a 73.8% stake and SBICAP Trustee Company will have a 1.52% stake.
In March this year, the Competition and Consumer Commission of Singapore gave conditional approval to the proposed deal, while in June the NCLT gave the green signal to the merger. Earlier in September 2023, this merger got approval from the Competition Commission of India subject to certain conditions.
War will break out in the sky
Air India and Vistara together will compete with domestic rivals such as current market leader IndiGo, SpiceJet and Akasa Air. In July, Indian airlines served nearly 13 million passengers, marking a growth of 7.3% over the previous year, according to government data.
IndiGo continues to dominate the Indian aviation market, with its market share rising to 62%. In contrast, Air India’s share has fallen to 14.3%. Vistara’s market share rose to 10% last month, while AIX Connect and SpiceJet’s shares fell by 4.5% and 3.1%. Akasa Air and Alliance Air’s market share also declined to 4.7% and 0.9%.
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