Tata Sons and Singapore Airlines to merge Air India and 'Vistara' by March 2024

Vistara Airlines will be merged with Tata Sons-owned Air India by March 2024. This information has been given in a release by Singapore Airlines. This decision has been taken after talks about the merger between Tata Sons and Singapore Airlines. Vistara Airlines is owned by both Tata Sons and Singapore Airlines, with Singapore Airlines holding the majority. This new arrangement will mean that now there will be more aircraft and more routes under the Air India brand. Singapore Airlines will have 25 percent stake in this big company, in which it will invest more than Rs 2000 crore. Presently Vistara holds 51 per cent stake, the remaining 49 per cent is with Tata. Tata had bought Air India earlier this year for Rs 18,000 crore as part of government disinvestment.

According to media reports, after the merger, Singapore Airlines' stake in the company will be 25 per cent. In this, she will invest around Rs 2000 crore. Singapore Airlines currently holds 51 per cent stake in Vistara and Tata Sons holds 49 per cent. Tata Group had bought the government-owned Air India for Rs 18000 crore earlier this year as part of government disinvestment.

Air India, a wholly owned airline of Tata Sons, has been the flag carrier of India. Tata Sons through its wholly owned subsidiary Talace Private Limited or Talace acquired 100 per cent stake in Air India on January 27, 2022. Vistara, a 51:49 per cent joint venture between Tata Sons and Singapore Airlines Limited (SIA), was incorporated in 2013. It is India's leading airline service provider with international operations in the Middle East, Asia and Europe.