Singapore Airlines gets FDI nod for Vistara-Air India merger
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Singapore Airlines gets approvals for Vistara’s merger with Air India
By Our Correspondent
New Delhi, August 30: Singapore Airlines on Friday said that the Government of India has given approval for its foreign direct investment (FDI) for Vistara-Air India merger. The Tata-owned Air India is in midst of a merger with Vistara Airlines.
The Singapore Airlines issued a statement on Friday on the approval of the government for the FDI and other compliance norms. “The FDI approval represents a significant development towards the completion of the proposed merger,” the Singapore Airlines said in a media statement.
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The airlines also said that “anti-trust and merger control clearances and approvals” have also been granted by the government of India. It added that the regulatory approvals will help in the early completion of the merger process.
The Singapore Airlines and Tata had announced the merger of Air India and Vistara in November 2022. The government had privatised Air India in January 2022.
After acquiring Air India, the Tata had announced the merger of Vistara Airlines with India’s oldest air-carrier.
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Singapore Airlines holds 49 per cent share in Vistara. Singapore Airlines and the Tata have said that they wish to make Air India a dominant player in the international airlines business.
Both the business houses are hopeful to wrap up the merger process by December, 2024. Singapore Airlines will become part owner of Air India. The Tata will own 74.9 per cent share in Air India. Singapore Airlines will own 25.1 per cent share in Air India.
The merger process of Air India and Vistara Airlines saw stiff protests from pilots. The operations of Vistara Airlines had majorly been affected earlier this year on account of the protests of pilots affiliated with Vistara Airlines.
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The Tata had leaned on the pilot pool of Air India to fly the Vistara flights. The pilots of Vistara Airlines had been agitating against the fear of loss of perks and emoluments after merger with Air India.
Air India has a major plan of expansion. The air carrier has signed pact with American airlines manufacturer to buy one of the largest fleet of planes in the near future.
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