The National Company Law Tribunal’s Chandigarh bench approved the merger of Tata Sons-owned Air India and Vistara airlines, aiming to finalize the merger by year-end.
Chandigarh: Last week, The National Company Law Tribunal’s Chandigarh bench approved the merger of Tata Sons-owned Air India and Vistara airlines, aiming to finalize the merger by year-end. With the tribunal’s approval, both airlines can commence the official integration of their staff networks, human resources, and fleet deployments.
Previously, in September last year, both airlines had obtained approval from the Competition Commission of India.
Tata Group took control of the national airline Air India in January 2022. Vistara, a joint venture between Tata Sons and Singapore Airlines Limited (SIA), with Tata Sons as the majority stakeholder, commenced operations in 2013.
The merger, announced by the Tata Group in November 2022, will position Air India as the nation’s largest international carrier and the second-largest domestic carrier. Following the merger, the combined entity will boast a fleet of 218 aircraft.
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As part of the merger deal, SIA will inject Rs 2,059 crore into Air India. Post-consolidation, SIA will hold a 25.1 percent stake in Air India, as per the Tata Group.
Air India CEO Campbell Wilson underscored ongoing transformation efforts, focusing on integration, growth, optimization, and enhancing customer experience. The company plans to retrofit over 100 aircraft, including 40 wide-body planes, and has placed orders for approximately 25,000 aircraft seats to modernize the fleet.
Wilson emphasized that the new Air India represents a significant departure from its predecessor and hinted at future partnerships. He expressed optimism about the company’s readiness to embrace change, suggesting that they will celebrate once fully prepared. The merger is slated for completion by March 2024.
