SIA, Tata Sons to merge Air India and Vistara
In line with this, SIA invested S$360m in Air India.
Flag carrier Singapore Airlines (SIA) announced it has agreed with Tata Sons to merge Air India and Vistara by March 2024.
In line with the agreement, SIA invested some S$360m in Air India, effectively giving the company a 25.1% stake in an enlarged Aid INdia group.
SIA plans to fund the investment through its internal cash resource, which stood at $17.5b as of September 2022.
“Tata Sons is one of the most established and respected names in India. Our collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier, which has won many global accolades in a short time,” Goh Choon Phong, CEO, SIA, said.
“With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market. We will work together to support Air India’s transformation programme, unlock its significant potential, and restore it to its position as a leading airline on the global stage.”
Should it be necessary, SIA and Tata have agreed to participate in additional capital injections. This would be equivalent to S$880m for SIA.