FCC

NCLT Approves Air India-Vistara Merger

2024-06-11

The National Company Law Tribunal (NCLT) has approved the merger of Tata Sons-owned Air India and Vistara airlines, a significant step towards creating one of the world?s largest airline groups. This decision, announced on June 6, 2024, enables the airlines to begin integrating their staff, resources, and fleets, with an aim to complete the merger by the end of 2024.

First announced in November 2022, the merger will absorb Vistara, which is 49% owned by Singapore Airlines (SIA). Post-merger, SIA will hold a 25.1% stake in the combined entity. The consolidation aims to make Air India the largest international carrier and the second-largest domestic carrier in India. The merged airline will operate a combined fleet of 218 aircraft.

The merger has received all necessary approvals, including from the Competition Commission of India and the Directorate General of Civil Aviation. Additionally, the NCLT?s order mandates that all formalities, including Foreign Direct Investment approvals and security clearances, be completed within nine months.

Campbell Wilson, CEO of Air India, highlighted that this merger is part of a broader transformation strategy at Air India, which includes the retrofitting of over 100 planes and the order of 470 new jets from Airbus and Boeing. The airline is also focused on enhancing customer experience through fleet optimization and potential new partnerships.