Singapore Airlines gets final approval to invest in Vistara’s holding company Air India’s merger. The final approval required for foreign direct investment from Singapore Airlines is expected shortly. The final approval of foreign direct investment will enable Singapore Airlines to get a 25.1 percent holding in the merged airline. Earlier Singapore Airlines had a 49 percent holding in Vistara. SIA Investment of ₹2,059 will be worth crore. The merged airline expects Tata Group to hold a 74.9 percent stake. The merged airline has already received all necessary regulatory approvals from the CCI and DGCA . After FDI clearance is granted, the merged airline will start to tell passengers about the new flight details of Air India particularly them who had bookings on Vistara after the merger.
According to sources, the merger could take place following Diwali on November 1 as it is a busy travel season. Between Diwali and fog in the last week of December is seen as an ideal period to clear some initial bumps that might arise from mergers.
The 70 aircraft in Vistara’s fleet will retain their existing branding until they next go under C-check, when the interiors and exteriors of these airplanes would be installed or painted to Air India standards. AMBIENCE PROPOSITION: Vistara grounded its planes only to repaint them (a better cabin experience than Air India’s older airplanes).
Key steps in the merger process have already been implemented, including the transfer of Vistara’s frequent flyer miles to Air India’s loyalty program and the relocation of several Vistara employees to Air India’s new headquarters in Gurgaon. Concerns about potential downgrades of Vistara passengers from premium classes to economy on Air India flights have been raised, but such occurrences are expected to be rare.
Initially, Air India’s management considered delaying the merger until its fleet was upgraded, allowing Vistara to continue operating as a premium carrier. However, this plan was shelved due to concerns from Vistara employees about the filling of key positions in the merged airline by Air India officials. Consequently, the merger is now set to proceed before the end of the year, even as Air India’s broader transformation is still ongoing.