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Air India-Vistara Merger Expected Post-Diwali, Awaiting FDI Approval

SimpliCity News Team File Photo · 27 Aug 2024

Coimbatore: The much-anticipated merger between Air India and Vistara is expected to be finalized after Diwali, around November 1, 2024. This timing is considered ideal for mergers as it follows the peak Diwali travel season and precedes the onset of winter fog, typically occurring around December 20.

The airline believes this timing will allow them to address any initial issues before facing the additional challenges posed by winter weather conditions. The final step before the merger is the approval of Singapore Airlines' foreign direct investment (FDI), which is expected to come by the end of this week, according to sources cited by Times of India.

Upon receiving FDI approval, Singapore Airlines, which previously held a 49% stake in Vistara, will secure a 25.1% share in the merged airline by investing ₹2,059 crore. The Tata Group will retain the remaining 74.9% stake in Air India.

All necessary regulatory approvals, including those from the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA), have already been obtained. Once FDI clearance is secured, the airline will announce specific merger timelines to passengers who have booked Vistara flights beyond the merger date, providing updates on new Air India flight numbers and schedules.

The airline does not plan to immediately repaint the Vistara fleet of 70 aircraft, as it would be impractical given the current passenger demand. Experts suggest that grounding 70 aircraft solely for repainting is not feasible. The current Vistara fleet will continue to fly in its existing livery until scheduled for heavy maintenance, at which time they will be repainted in Air India's new brand colors.

Air India Group has already initiated various minor stages leading to the merger, including the integration of Vistara's frequent flyer miles into Air India's loyalty program and the relocation of several Vistara employees to Air India's new headquarters in Gurgaon.

air india vistara merger aviation fdi tata group singapore airlines

Air India-Vistara Merger Expected Post-Diwali, Awaiting FDI Approval

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