The National Company Law Tribunal (NCLT) has granted its seal of approval to the merger of Air India and Vistara, marking the birth of one of the globe’s most expansive airline conglomerates. Under this historic agreement, Singapore Airlines will secure a significant 25.1% stake in Air India. Vistara, a joint venture between Tata Group and Singapore Airlines, adds substantial weight to this transformative merger.
Merger Milestones
Air India anticipates finalizing the merger by year-end, a strategic move announced back in November 2022. The Chandigarh branch of the NCLT has meticulously greenlit a composite scheme of arrangement, orchestrating the integration of Air India, Vistara, and Talace under the esteemed Tata Group umbrella.
Dissolution
Upon completion of merger formalities, Vistara, as the Transferor Company, will gracefully dissolve without necessitating winding-up procedures. Timely acquisition of pending approvals, including security checks and FDI clearance, remains paramount within this operational framework.
Regulatory Framework
To pave the way for seamless integration, key regulatory prerequisites demand attention. Within a nine-month timeline, companies must secure Foreign Direct Investment (FDI) approval from Singapore Airlines, alongside requisite security clearances as per Civil Aviation Regulations (CARs) stipulated by the Ministry of Civil Aviation and DGCA.
Regulatory Green Lights: Both the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA) have accorded their blessings to the merger scheme, marking a significant regulatory milestone. The unanimous support from creditors, shareholders, and regulatory bodies underscores the robust foundation of this transformative merger.
Stakeholder Endorsement
Further bolstering the merger’s momentum, stakeholders, including the Income Tax Department, have bestowed their favorable endorsement, signaling a harmonious alignment with the envisioned trajectory of this historic amalgamation.