Singapore Airlines confirms Vistara-Air India merger

Singapore Airlines (SIA) is engaged in confidential talks with Tata Sons for merging Vistara with Air India.

SIA owns 49 percent stake in Vistara and is among the four airlines run by Tata Group including Air India, Air India Express, and AirAsia India. Currently, executives of both airlines are holding discussions on fine-tuning various aspects related to integration — product, services, etc.

The Competition Commission of India (CCI) cleared the merger of AirAsia India with Air India. The National Company Law Tribunal’s approval will also be required for the merger. A decision on stakes both sides will own in the merged entity will be done after completion of the exercise.

The Tata group is also aiming for 30 percent market share for Air India in the domestic market as part of a five-year transformation plan released last month. Air India had a market share of 8.4 percent in August. AirAsia India and Vistara had a share of 4.6 percent and 10.4 percent, respectively.

SIA stated, “The discussions are ongoing and no definitive terms have been agreed upon between the two parties. There is no certainty or assurance whatsoever that any definitive agreement will be entered into or a potential transaction will materialise or proceed to completion arising out of these discussions.”