Vistara will merge with expanding Air India following the Tata takeover

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Vistara will merge with expanding Air India following the Tata takeover

By March 2024, Vistara Airlines and Tata-owned Air India will be merged, the firm stated. With an investment of about INR 2,000 crore (USD 245 million), Singapore Airlines, which has a minority stake in Vistara as part of its joint venture with Tata, will hold approximately 25% of the expanded Air India.

As Tata Sons rebuilds a massive aviation arm of its business, the restructuring will result in a larger fleet and more routes operated under the Air India name. Tata now controls 51% of Vistara, with Singapore Airlines owning the remaining 49% of the joint venture established in 2013.

The idea has been to combine all of Tata's aviation companies under the name of Air India ever since it acquired that company for INR 18,000 crore (USD 2.21 billion) as part of government disinvestment around a year ago.

According to a release from Singapore Airlines, the two owners of Vistara "hope to conclude the merger by March 2024, subject to regulatory clearances." By 2024, Tata would also combine its two low-cost airlines, Air India Express and AirAsia India, under the Air India name.

This will bring the total number of aircraft in the fleet to 218 and combine Air India's 113 with AirAsia India's 28 and Vistara's 53. Then, it will rank as both India's second-biggest domestic airline and its largest foreign carrier, said Tata Sons.

This is a significant milestone in the Tatas' efforts to revive Air India, a business they started but then nationalized before bringing it back to Tata Sons when losses mounted and the government thought it would be preferable to sell it off.

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