Singapore Airlines has received approval from the Indian government to proceed with its merger with Air India , a key step towards completing a deal to create one of the world’s largest airline groups. First announced in November 2022 , the deal will see Singapore Airlines acquire a 25.1 per cent stake in the Indian flag carrier.
Vistara , a full-service carrier jointly owned by India’s Tata Group and Singapore Airlines, will be absorbed into Air India as part of the deal and cease operating its own flights from 12 November. Air India is also owned by the Tata Group. Singapore Airlines said its acquisition of a quarter of Air India was approved by India’s government under foreign direct investment ( FDI ) laws, which regulate investment in India-based businesses from the rest of the world.
The merger had alredy been approved by competition authorities in both Singapore and India. “The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the proposed merger,” Singapore Airlines said in the filing to the Singapore Stock Exchange on Friday. “SIA will make the necessary announcement(s) upon completion of the proposed merger or in the event that there are other significant developments,” the filing said on Friday.
In September last year, the Competition Commission of India said: “CCI approves the merge.