Vistara Foresees Legal Nod for Air India Merger by H1 2024

By Consultants Review Team Monday, 08 January 2024

Vistara CEO Vinod Kannan announced on Monday that the airline anticipates receiving all legal approvals for its proposed merger with Air India in the first half of 2024. The merger, disclosed by the Tata Group in November 2022, includes a deal wherein Singapore Airlines will acquire a 25.1% stake in Air India.

Vinod Kannan stated during a briefing that the legal approvals for the merger are expected to be secured by the middle of 2024, with the operational merger anticipated in the early or middle part of the following year. Additionally, he mentioned that all competition approvals are expected to be obtained in the current quarter, which ends in March.

The Competition Commission of India (CCI) granted approval for the proposed merger on September 1, 2023. Presently, Vistara operates with a fleet of 67 planes and serves as a joint venture between Tatas and Singapore Airlines. The merger of Vistara with Air India is a significant move in the aviation industry, and the involvement of Singapore Airlines adds further dimensions to the strategic partnership.

As the airline sector continues to undergo transformations and alliances, the successful merger could lead to an expanded and strengthened presence for both Vistara and Air India in the competitive Indian aviation market. The timeline set by Vinod Kannan provides stakeholders and the industry with a glimpse into the expected progression of the merger, with legal and operational aspects aligning in the coming years. The completion of the merger and subsequent operational integration will be closely monitored by industry observers, competitors, and travelers interested in the developments of these prominent carriers.

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