Tata Sons and Singapore Airlines (SIA) have agreed to merge Air India and Vistara to create India’s second largest carrier.The merged entity will be named Singapore Airlines at an investment of Rs 2,058.5 crore (USD 250 million). will get 25.1 percent stake. The rest will be held by the Tatas. These stakes will be in the enlarged Air India group, which will have Air India, Vistara, AirAsia India and Air India Express. The merger of all these airlines is expected to be completed by March 2024, after receiving regulatory approvals. Air India group is already in the process of merging Air India Express and AirAsia India into a single entity that will provide low-cost flight services. .
The expanded Air India group will help strengthen India’s aviation sector. This will provide new growth opportunities for this airline after years of mismanagement and losses. The joint venture between Tata Sons and Singapore Airlines will provide Air India with the necessary strategic expertise, industry capabilities and capital flows. For the Tata group, this merger marks the beginning of another chapter of its business activities in the aviation sector. After the merger of all the brands, SIA will have access to attractive landing and parking slots across the globe. It will also get a strong foothold in the busy westbound market from India, which is dominated by the Emirate of Dubai and others.
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