On Tuesday, Singapore Airlines announced that the merger between Air India and Vistara is currently in progress, and the airline is waiting for Foreign Direct Investment (FDI) and other regulatory approvals. In its announcement of the December quarter results, the airline stated that the merger will enhance its position in the Indian aviation industry, supporting its multi-hub strategy and enabling it to directly expand in the rapidly growing aviation market.

“The merger of Air India and Vistara is currently underway, awaiting foreign direct investment and regulatory approvals. Once finalized, it will result in SIA (Singapore Airlines) holding a 25.1 percent stake in a larger Air India Group, which will have a strong presence in all major segments of the Indian airline market.”

Vistara is a collaboration between Singapore Airlines and Tata Group. As part of the merger agreement between Vistara and Air India, Singapore Airlines will purchase a 25.1 percent share in Air India.

Merger completion expected by 2025

Last month, in January, Vistara CEO Vinod Kannan stated that the merger is projected to be finalized by mid-2025. Additionally, it is expected that all legal authorizations for the deal will be obtained between March and October of this year.

On September 1, 2023, the Competition Commission of India (CCI) gave the green light to the consolidation of Vistara’s parent company, Tata Singapore Airlines Limited (SIA) Airlines, with Air India.

During the October-December quarter of 2023, SIA Group announced an operating profit of SGD 609 million, marking a 19.3 percent decrease from the same period last year. It is noteworthy that the group’s net profit increased by 4.9 percent to SGD 659 million, primarily attributed to factors such as reduced tax expenses, surplus from aircraft disposals, and additional income from spare engines.