On Friday, Indian airline Vistara announced that starting in November, its flights would be operated by Air India, marking significant progress in the ongoing merger between Vistara and India’s national carrier, following a crucial approval from the Indian government.
Singapore Airlines (SIAL.SI), which holds a 49% stake in Vistara through a joint venture with Tata Group, confirmed that it received clearance for foreign direct investment into the expanded Air India, a major step in the merger pathway.
In November 2022, Singapore Airlines revealed plans to merge the decade-old Vistara with Tata-owned Air India, aiming to establish a leading full-service airline in both domestic and international markets.
India ranks among the world’s fastest-growing aviation markets, with global airlines increasing their flight services to the country and Indian carriers having made record orders for hundreds of new aircraft last year.
According to Singapore Airlines, the merger, which has received approval from antitrust regulators in both India and Singapore, is expected to be finalized by the end of 2024. This completion date has been pushed back from the original goal of March, and discussions are ongoing about extending the previously agreed deadline of October 31.
Effective September 3, customers will no longer be able to book flights with Vistara for travel dates on or after November 12. The airline stated that all Vistara-operated aircraft will be transitioned to Air India, and bookings for these routes will be redirected to the Air India website.
Air India personnel have been collaborating with Vistara for months to facilitate the transition, with CEO Campbell Wilson expressing eagerness to provide an expanded network, more flight options, and an enriched frequent flyer program.
Air India has previously indicated that the Vistara brand will eventually be phased out. In exchange for a $250 million investment, Singapore Airlines will acquire a 25.1% stake in the newly formed Air India group.
After the merger is completed, the Singaporean airline plans to invest up to 50.2 billion Indian rupees (approximately $599 million). Tata Group took over Air India in 2022 and has since initiated a significant transformation of the formerly state-run airline.
