Vistara-Air India Merger Receives Conditional Approval

By Consultants Review Team Tuesday, 05 March 2024

Singapore's competition authority has given provisional clearance to the merger of Air India and Vistara, a joint venture between Tata Group and Singapore Airlines.  The permission from Singapore's Competition and Consumer Commission comes fifteen months after the country's leading airline, Vistara, revealed its intention to merge with Air India in November 2022. It was revealed that the company intended to grow into a larger full-service carrier operating both domestically and abroad.

In evaluating the many transactions related to the merger, the Competition and Consumer Commission of Singapore has highlighted several issues regarding competition.

According to a Reuters report on Tuesday, the watchdog observed that the parties have the majority of market shares among airlines that operate direct flights on four routes of concern: those that connect Singapore with the Indian cities of New Delhi, Mumbai, Chennai, and Tiruchirapalli.

According to the watchdog, each party has provided a plan that it deems enough to resolve the concerns and prevent competition difficulties.

The Competition Commission of India (CCI) approved Vistara's merger with Air India in September of last year.

The Competition Commission of India announced in a statement that it has approved the merger of Tata SIA Airlines with Air India and Singapore Airlines' (SIA) acquisition of a portion of Air India's shares, provided that the parties fulfill the voluntary obligations they have made.

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