The Tata Group has been going full steam ahead with consolidating aviation assets in its portfolio. While Air India Limited has already received approval and legally merged AirAsia India and Air India Express, the airline had filed for the merger of Vistara into itself earlier this year. It awaited the blessings of the Competition Commission of India, India’s antitrust regulator.

Air India gets approval from the Indian regulator to merge Vistara with itself.

In April 2023, Air India filed a request with the Competition Commission of India (CCI), India’s anti-trust regulator, to merge Vistara into itself and bring Singapore Airlines as a stakeholder. This request has now been approved, per a tweet from CCI today.

C-2023/04/1022 CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties.#CCIMerger #Mergers pic.twitter.com/QihGf4xxus

— CCI (@CCI_India) September 1, 2023

 

While the order has yet not been put out in the public domain to find out what concessions have had to be given by Vistara and Air India to make this happen, it should be out soon.

The merger needs to be closed by 2024, which should be easy now and might happen (legally) within the year itself, with the consolidation of AoC happening later. Remember, the airline will still need the blessings of other country regulators, such as those of the European regulator and UAE, because both airlines operate flights there, so there is an overlap.

Bottomline

Air India has received regulatory approval from India’s anti-trust regulator to merge Vistara into itself. This means that India will see more airlines consolidation in the coming days, with one brand name change included. Vistara’s brand name will cease to exist once this transaction concludes.

What do you think will be the transaction path for Air India to merge Vistara into itself?

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