Tata Group Announces Merger of Air India and Vistara

NEW DELHI: The Tata Group plans to bring all its Airline businesses under one head by the March of 2024 and thus ushering in a new era of aviation in the country.

The Tata Group has been in news regarding its aviation sector for quite some time from its accusation of Air India to the order of a huge number of planes from both Boeing and Airbus, this sector of the company was in acquisition mode. And now they have announced the merger of all its businesses under one umbrella.

Tata Group already owns Air Asia India and flew planes between several important cities in the country and abroad. It also had a 51:49 majority partnership with Singapore Airlines Ltd owned Vistara before it went ahead with Air India. The brand acquired the Indian flag bearer brand Air India at the beginning of this year via its fully owned subsidiary Talace pvt ltd.

And now the group has announced the merger of Air India and Vistara. Combining the two brands, the fleet size will become the second largest player in terms of domestic and first in terms of international flights.

"Vistara shall be merged with Air India post receipt of requisite approvals. As part of the merger transaction, SIA shall also invest ₹ 2,059 crore in Air India. Post the consolidation, SIA shall hold 25.1% shareholding in Air India," mentioned a release from the Tata Group.

While the Chairman of Tata Sons, N Chandrasekaran said that this merger will be a milestone on the journey of Air India to become a truly world-class airline and maintain both full-service and budget friendly options available to the customers, the chief executive officer of Singapore Airlines expressed his happiness about collaborating with one of the most respected brands from India.

After the delivery of new planes and completion of all brand mergers, Tata Group is expected to run the largest fleet of both domestic and international planes and offer a wide variety of services to all its customers. It will also force the other brands to provide better services and facilities to their customers.

 Also Read: Air India Aiming at 30% Share in Both Domestic and International Air Traffic

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