New Delhi: Tata group has announced the integration of its airlines Vistara and Air India by March 2024. In this regard, a merger agreement has been signed between the Tata Group and Singapore Airlines. As part of the deal, Singapore Airlines will invest 2058 crores in Air India. Vistara airlines is a joint venture of Singapore Airlines and Tata Group.
Both companies will provide fund
Both companies Singapore airlines and Tata group have also agreed upon providing funds and making investments for the smooth operations of Air India in future. At present, Tata Group holds 51 percent stake in Vistara and Singapore Airlines 49 per cent. Earlier this year, Tata bought Air India for Rs 18,000 crore as a part of government disinvestment plan.
Air India will became largest airline
New company formed after the merger will emerge as the largest airlines company in the country. The discussion for the current merger had been underway for a while now; however, now both companies have sealed this discussion with the deal. Post the merger, Singapore Airlines will hold a 25.1 percent stake in Air India.
Merger possibility of low-budget services
According to media reports, Tata Sons is working towards the merger of its low budget air services Air Asia India and Air India Express. This merger has also got the approval of CCI.