New Delhi: The Tata Group has got the green light from the Competition Commission of India (CCI) to merge its two full-service airlines, Air India and Vistara, subject to some voluntary commitments by the parties. The merger will make Air India the second-biggest domestic carrier and the top international carrier in the country.
The merger is seen as a major move by the Tata Group to consolidate its aviation business. Vistara, also known as Tata SIA Airlines, is a joint venture between Tata Sons and Singapore Airlines.
The CCI announced its approval on social networking platform X on Friday. “The Commission approves the combination of Tata SIA Airlines with Air India and the acquisition of certain shares in Air India by Singapore Airlines subject to compliance with the voluntary commitments proposed by the parties,” it said.
Singapore Airlines will hold a 25.1 percent stake in Air India after the merger
Vistara and Air India are both full-service airlines of the Tata Group. Singapore Airlines has a 49 percent stake in Vistara. The Tata Group declared its merger plan with Air India in November last year, under which Singapore Airlines will also acquire a 25.1 percent stake in Air India.
The parties sought CCI’s approval for the merger in April this year. The parties involved in the merger are Tata Sons Private Limited (TSPL), Air India Limited, Tata SIA Airlines Limited (TSAL), and Singapore Airlines Limited.’