Air India-Vistara Merger Is Cleared for Take-Off
05.09.2023 - 03:35
/ skift.com
/ Amrita Ghosh
/ Air India
Antitrust watchdog Competition Commission of India (CCI) has approved Tata group’s plan to merge its full-service carriers Air India and Vistara.
The nod clears the decks for the merger – the combined entity will retain the Air India brand and the Vistara brand will be retired. The fair-trade regulator’s approval is a must for mergers and acquisitions.
The merger is expected to conclude by March 2024.
Ownership: Air India is fully owned by Tata Sons, while Vistara is a joint-venture of Tata Sons and Singapore Airlines, with an equity split of 51% and 49%, respectively. Singapore Airlines will hold a 25.1% in the merged airline.
In April, Tata Sons, Singapore Airlines, Air India, and Vistara had jointly filed for the regulator’s approval to the proposed merger.
Approval wasn’t automatic: In June, CCI issued a notice to Air India, seeking clarification on why its proposed merger with Vistara should not be investigated over concerns about competition. The two Tata group airlines are understood to have told the CCI that there is strong competition from rivals on most of its routes.
New Brand Identity: Last month, Air India revealed a new brand identity, including new livery for its aircraft that included elements from the existing brand identities of Air India and Vistara.
Air India Express is also expected to reveal the new brand identity for the group’s low-cost airline soon.
Consolidating Airlines: The Tata group is already in the process of merging its low-cost carriers Air India Express and AIX Connect (formerly Air Asia India). Once both the mergers are complete, the Air India group will have a full-service carrier Air India and a low-cost airline Air India Express. The Air India group is working on a fleet modernization and expansion plan with orders for 470 aircraft from Boeing and Airbus.
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