Merger of Air India and Vistara: On Friday, September 1, the Competition Commission of India (CCI) announced that the merger of Tata Singapore Airlines Limited (SIA) Airlines, which owns Vistara, and Air India had been allowed. The regulator further stated that the parties’ compliance with voluntary undertakings made by them is a condition of Singapore Airlines’ acquisition of a specific stake in Air India.
Tata Sons and SIA have partnered to form Vistara. Tata Sons owns 51% of the company, and Singapore Airlines owns the remaining 49%. Talace Private Limited, a wholly owned subsidiary of Tata Sons, is the owner of Air India.
In addition to offering economies of scale to both Vistara and Air India, the possible merger may also provide Singapore Airlines access to dozens of new slots throughout the world and aid Tata Sons in the consolidation of its aviation industry balance sheets. After the merger, Air India and Vistara are anticipated to maintain their own brand identities, albeit ultimately only one brand may endure.
India has significant internal and international traffic flows, which are anticipated to more than double over the following ten years, according to Singapore Airlines.
“Shareholders and prospective investors are urged to use caution while interacting with or trading in the company’s securities. According to the pertinent provisions of the Listing Manual of the Singapore Exchange Securities Trading Ltd, the company will make the necessary announcements as appropriate or whenever there are any significant developments regarding the potential transaction, the airline said in a statement last year.
Air India, Air India Express, AirAsia India, and Vistara are the four airlines now run by the Tata group. In order to reduce costs, create synergies by maximising aircraft utilisation and routes, and increase market share to compete with IndiGo, India’s largest airline with a market share of 59%, Tata Sons is developing an airline consolidation strategy.
As part of its rebranding earlier this month, Air India debuted its new brand identity and aircraft livery, which symbolise the airline’s audacious vision for the future. The airline’s brand-new aircraft livery and design incorporate a pattern that is inspired by chakras and a colour scheme of deep red, aubergine, and gold highlights. When Air India’s first Airbus A350 joins the fleet with the new livery in December 2023, passengers will also start to notice the new logo while on their flight.