[Breaking]: Tata Sons, Singapore Airlines to merge Air India, Air Vistara by March 2024

Singapore Airlines (SIA) and Tata Sons announced on Tuesday that they have agreed to merge Air India and Vistara, with SIA also investing Rs 2,059 crore in Air India as part of the transaction.

This would give SIA a 25.1% stake in an enlarged Air India group with a significant presence in all key market segments. SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals.

SIA intends to fully fund this investment with its internal cash resources, which stood at S$17.5 billion as of  September 30, 2022.

SIA and Tata have also agreed to participate in additional capital injections, if required, to fund the growth and operations of the enlarged Air India in FY23 and FY24. Based on SIA’s 25.1% stake post-completion, its share of any additional capital injection could be up to Rs 5,020 crore payable only after the completion of the merger.

N Chandrasekaran, Chairman, Tata Sons said: "The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline. We are transforming Air India, with the aim of providing great customer experience, every time, for every customer. As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performance. We are excited with the opportunity of creating a strong Air India which would offer both full-service and low-cost service across domestic and international routes.  We would like to thank Singapore Airlines for their continued partnership.” 

Vistara, a 51:49 joint venture between Tata Sons and Singapore Airlines Limited, was established in 2013 and is India’s leading full-service carrier with international operations in Middle East, Asia and Europe. 

With this consolidation, Air India shall be India’s leading domestic and international carrier with a combined fleet of 218 aircraft, making it India’s largest international carrier and second largest domestic carrier.

(Only the headline and picture of this report may have been reworked by the LatestLaws staff; the rest of the content is auto-generated from a syndicated feed.)

Source Link