The government cleared the final hurdle for the Air India-Vistara merger, approving Singapore Airlines’ $276 million investment, paving the way for the deal’s completion by year-end.
The Indian government has given the green light to a $276 million investment by Singapore Airlines Ltd., marking the final approval needed for the merger of Air India Ltd. and Vistara. This Foreign Direct Investment (FDI) clearance paves the way for Singapore Airlines to acquire a 25.1 percent stake in the newly combined carrier, a significant step in the integration of the two airlines.
The merger, initiated in November 2022, is expected to be completed by the end of 2024. Singapore Airlines, in a regulatory filing on Friday, highlighted that the FDI approval, along with previous anti-trust and merger control clearances, represents substantial progress toward the finalisation of the merger.
Tata Group, which owns Air India and operates Vistara in a joint venture with Singapore Airlines, will soon oversee one of the largest airline groups in the industry. The completion of the merger, initially slated for October 31, 2024, is now anticipated by the end of this year.
