Air India, which is in the process of completing the merger of Vistara with itself, had recently received the CCI nod to go ahead with the merger back in July 2024. Since then, operational harmonisation has been initiated, and Vistara’s employees are being seconded to Air India.
However, one more approval was needed before the legal merger could take off: Singapore Airlines’ additional investment of USD 250 million in the combined entity to bring its stake up to 25.1% in the combined Air India. We now have an update on this.
Singapore Airlines receives the approval of RBI to proceed with its investment in Air India.
Singapore Airlines today confirmed that it has received the foreign direct investment (FDI) approval for the proposed merger of Air India and Vistara. Once Singapore Airlines invests the money, it will get a 25.1 per cent stake in Air India (after accounting for the money already invested in Vistara as a part of its shareholding).
As you can note, the airline had a long-stop date (the maximum date) for closing the transaction as October 31, 2024. Air India and Singapore Airlines will now extend this date to accommodate the investment and the eventual merger of Vistara and Air India into one carrier entity by the end of 2024.
The Vistara passengers are expected to be notified of their new Air India flight numbers and PNRs after the Diwali rush and before the winter 2024 fog sets in. This will be the period when the merger will be implemented. The merger of their frequent flyer accounts should also happen around the same time.
Bottomline
Air India and Vistara’s merger got another boost after the RBI/Government of India permitted Singapore Airlines to invest additional money to up their stake to 25.1% in the combined Air India entity that will emerge after the merger of Vistara and Air India into one legal entity. The merger is expected to be completed by the end of 2024, mainly between November and December 2024.
What do you make of the merger of Air India and Vistara now that it is so close?
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The FFP seems to have developed a glitch. Took a flight 4 days back and it’s not credited to my account yet, normally used to happen in a few hours after the completion of the flight.
@R, now takes up to 48 hours again.
Thanks, Ajay. This is up on the Vistara website. https://www.airvistara.com/in/en/vistara-airindia-merger
Nov 11, 2024 seems the last day for Vistara!