Vistara to Merge with Air India as Singapore Airlines Gains FDI Approval

Singapore Airlines (SIA) announced on Friday that it has secured approval from the Indian government for foreign direct investment, marking a crucial step in the merger of its 49% joint venture, Vistara, with Air India. This move is part of SIA’s strategy to integrate Vistara into Air India, which is owned by Tata, to establish a leading full-service airline with a strong presence in both domestic and international markets.

The merger plan, initially revealed in November 2022, aims to consolidate Vistara and Air India into a unified entity. SIA highlighted that receiving the FDI approval, along with clearances from antitrust and merger control authorities, signifies a major milestone towards finalizing the merger.

Regulatory bodies in both India and Singapore have approved the deal, which is anticipated to be finalized by the end of 2024. Following the merger, SIA will retain a 25.1% share in the newly formed airline group.