The Competition Commission of India (CCI) on Friday approved the merger of Air India-Vistara with subject to certain conditions. Taking to X (formerly known as Twitter), the CCI said that it has given a nod to the merger. "CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties," it added.
Air India- Vistara part of the Tata Group
It should be noted here that Vistara and Air India are full-service carriers that are part of the Tata Group, and Singapore Airlines holds a 49 per cent stake in Vistara.
In November 2022, Tata Group announced the merger of Vistara with Air India under a deal wherein Singapore Airlines will also acquire a 25.1 per cent stake in Air India. The deal would mark a major consolidation in India’s fast-growing aviation space.
What the merger would offer?
The approval for the proposed combination was sought from CCI in April this year. The parties to the combination are Tata Sons Pvt Ltd (TSPL), Air India Ltd, Tata SIA Airlines Ltd (TSAL) and Singapore Airlines Ltd. It is worth mentioning here that the deal will make Air India the country’s largest international carrier and second-largest domestic carrier.
(With inputs from PTI)