With Tata’s Air India and Vistara merger talks going on for more than 18 months, Singapore Airlines has officially announced that it has received approval from the central government for foreign direct investment. With this investment, Singapore Airlines becomes the only foreign company to acquire a significant stake in an Indian airline. A news package about it.
Tata Group, India’s largest conglomerate, bought the state-owned Air India Group and re-entered the airline industry after the JRD Tata era.
The Tata Group operated these four airlines namely Air India, Air India Express, AirAsia India and Vistara.
At some point, Air India Express and AirAsia India were merged into one low-cost carrier.
At the same time, Air India and Vistara were operating together as a full-service carrier. Tata Sons owns 100 percent of Air India. Singapore Airlines, on the other hand, owns 49 per cent stake in Vistara, a joint venture between Tata Sons and Singapore Airlines.
Singapore Airlines is expected to acquire a 25.1 percent stake in Air India for USD 250 million by the end of this year, with the central government’s investment approval now in place. According to reports, Singapore Airlines plans to invest up to USD 675.42 million after the merger.
This gives Singapore Airlines a foothold in one of the world’s fastest growing air travel markets. And beyond the small domestic market, Singapore Airlines is spreading its wings, say business experts.
Tata Aviation, which posted a loss of around Rs 15,532 crore last fiscal, is expected to turn a profit.
After the merger with Air India, all Vistara flights will be operated by Air India. Also, Vistara is expected to operate its last flight on November 11.
Vistara has therefore announced that from September 3rd, customers will not be able to make travel bookings on Vistara after November 12th and bookings for routes operated by flights will be redirected to Air India’s website.
Vinod Kannan, Chief Executive Officer of Vistara, said that Vistara and Air India are committed to providing smooth and hassle-free flight services.
Campbell Wilson, Managing Director of Air India, has assured that it is looking forward to fulfilling the additional flight preferences of its customers and providing a world-class travel experience.
Meanwhile, Air India, which has concluded joint venture agreements with Malaysia Airlines and Indonesia’s Garuda Airlines, is also in talks with Japan’s All Nippon Airways.
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