Mumbai, Maharashtra: Tata Sons and Singapore Airlines have taken a big decision related to the merger of Air India and Vistara which will be done by March 2024. A statement issued by Singapore Airlines said that Tata Sons and Singapore Airlines have taken this decision after negotiations.
“As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performance,” the company released a quote by Tata Son’s chairperson N Chandrasekaran.
It has been said by Singapore Airlines that the target of merging Vistara with Air India has been set for March 2024. Vistara Airlines is a partnership of both Tata Sons and Singapore Airlines. Singapore Airlines has a higher stake in this. Now, under this new arrangement, more aircraft will be able to operate on more routes in the name of the Air India brand.
According to media reports, after the merger, Singapore Airlines’ stake in the company will be 25 percent. In this, they will invest around Rs 2000 crore. Singapore Airlines currently holds a 51 percent stake in Vistara and Tata Sons holds 49 percent. Apparently, Tata Group had bought the government-owned Air India for Rs 18000 crore earlier this year as part of government disinvestment.
Notably, the Tata Group currently also owns low-cost airlines Air India Express and Air Asia. Both these airline companies are also to be merged with Air India by March 2024. In such a situation, it is clear that after March 2024, all four airlines owned by Tata Group will operate under the same brand name Air India.