NCLT Greenlights Air India-Vistara Merger

Aerodynamic Alliance: NCLT Clears Air India-Vistara Merger

The National Company Law Tribunal, Chandigarh Bench, has approved the merger of Air India, which is owned by Tata Sons, with Vistara. The NCLT has also allowed both airlines to integrate their networks, human resources, and fleet deployments.

Vistara is a joint venture of Tata Sons Private Limited and Singapore Airlines Limited (SIA). Tata Sons holds a 51% stake in the partnership, and Singapore Airlines owns a 49% stake. The company is registered as TATA SIA Airlines Limited.

In November 2022, Singapore’s flagship carrier announced its plan to merge Vistara and Air India, aiming to create a dominant full-service airline in the domestic and international markets.

According to the deal, Tata, an autos-to-steel conglomerate, would hold 74.9% of the combined entity, while Singapore Airlines would own the remaining 25.1%. The Competition Commission of India (CCI) approved the merger in September 2023, and Singapore’s competition watchdog approved the merger between Air India and Vistara in March of this year.

Vistara began commercial operations in January 2015 and has a fleet of 70 planes. Additionally, the group is merging its budget carriers, Air India Express and AIX Connect (formerly AirAsia India). Once both mergers are complete, the Air India group will have a full-service carrier, Air India, and a low-cost airline, Air India Express.