Air India-Vistara Merger: Singapore Airlines (SIA) will invest Rs 3194.5 crore in Tata Group-owned Air India. This investment will happen after the Air India-Vistara merger and will be completed by November 11, 2024. After this merger, Singapore Airlines (SIA) will have a 25.1 percent stake in the extended Air India. It can be understood that after this merger, Air India will be the only full-service carrier in the country. Vistara includes SIA’s 49 per cent stake and a cash payment of Rs 2058.5 crore, which will be settled through the merger.
Vistara Took Its First Flight On January 9, 2015
Vistara, a full-service carrier, started flying on January 9, 2015. It is mainly a joint venture between Tata and Singapore Airlines, in which Tata has a 49 percent stake.
There Is Important Information In The Press Release
On Friday, Singapore Airlines (SIA) Group said that the merger includes Rs 20,585 million (Rs 2058.5 crore) in cash in exchange for 49 per cent interest in Vistara and 25.1 per cent equity interest in Extended Air India. The information about the merger in the press release issued on Friday shows that from November 12, the airline will not operate under the Vistara brand. Still, Extended Air India flights will be operated as a full-service carrier.
Know The Special Points Of The Air India-Vistara Merger
After this merger, especially based on the funding that will be put into Air India by the Tata Group, it will work as a joint entity after an additional investment of Rs 3194.5 crore by Singapore Airlines. Air India and Singapore Airlines have unanimously agreed to extend their codeshare agreement. The joint network of Air India and Singapore Airlines will also include 11 Indian cities and 40 other international destinations.
