Singapore: Singapore Airlines has received the green light from the Indian government for its Foreign Direct Investment (FDI) proposal, a key milestone in the planned merger of Vistara and Air India. This strategic move, which aims to create one of the world’s largest airline conglomerates, marks a significant step forward in the aviation industry. The merger, first announced in November 2022, will see Singapore Airlines acquire a 25.1% stake in Air India. This consolidation is expected to be finalized by the end of this year, although the completion is contingent on meeting various Indian legal and regulatory requirements.
Air India is currently owned by the Tata Group, while Vistara operates as a joint venture between Tata and Singapore Airlines, with the latter holding a 49% stake. In a regulatory update filed with the Singapore Stock Exchange, Singapore Airlines confirmed the receipt of FDI approval, along with other essential anti-trust and merger clearances. The airline emphasized that while these approvals are crucial, the merger’s finalization is anticipated by the end of 2024, provided all legal conditions are satisfied.
The merger has already secured multiple approvals, including from the National Company Law Tribunal (NCLT) in June and Singapore’s competition watchdog CCCS in March. The Competition Commission of India (CCI) also granted conditional approval in September 2023. Discussions are ongoing to extend the original deadline, initially set for October 31, 2024. Singapore Airlines has assured stakeholders that it will provide updates as the merger progresses or if any significant developments occur.
