The proposed merger of Air India and Vistara has been finalised by the Tata Group and Singapore Airlines (SIA). SIA would own the remaining portion in the combined company; Tata will have around 75% of it. In Vistara, Tatas and SIA hold 51% and 49% respectively. The proposed merger is anticipated to be finalised within a year of receiving all necessary approvals, and it will probably be announced soon.
By combining Vistara and the Maharaja to create a full-service arm and AirAsia India (AAIPL) and AI Express to create a low-cost arm, the Tata Group hopes to create AI, which will act as the umbrella carriers.
According to people in know, like AI Express and AAIPL, the merger of AI and Vistara will also require several clearances from agencies such as the Competition Commission of India (CCI), which is expected to take anywhere up to six months.
The one-year target factors in hiccups on the way. For instance, the Competition and Consumer Commission of Singapore (CCCS) expressed concern about the acquisition of AI by Tata in June due to the fact that three related entities (AI, SIA, and Vistara) now have a significant presence on "overlapping passenger routes" between India and the city state, including Mumbai and Delhi. SIA had last month confirmed being in talks with Tata Group for a “potential integration” of Vistara with AI.