India's Tata Sons to merge Air India with Vistara airlines
India’s oldest and largest conglomerate, Tata Sons, will merge its Air India with Vistara, a carrier it jointly runs with Singapore Airlines, in a major step toward revamping the country’s debt-laden national carrier
NEW DELHI (AP) — India's oldest and largest conglomerate, Tata Sons, will merge its Air India with Vistara, which it jointly runs with Singapore Airlines, in a major step toward revamping the country’s debt-laden national carrier.
The merger will strengthen Singapore Airlines' foothold in India's fast-growing aviation market, the company said in a statement. It is also expected to bolster the Tata Group's competitive position in the market against the country's dominant carrier, IndiGo.
Singapore Airlines is investing $250 million in Air India as part of the deal, giving it a 25.1% stake in the group, with the rest owned by the Tata Group. Both companies aim to complete the merger by March 2024, subject to regulatory approvals, Singapore Airlines said in its statement.
“We will work together to support Air India's transformation program, unlock its significant potential, and restore it to its position as a leading airline on the global stage,” Singapore Airlines' CEO Goh Choon Phong said in the statement.
