Saturday, August 24, 2024 The Vistara-Air India merger is moving forward, with FDI approval expected soon, and plans to finalize the merger after Diwali. The eagerly awaited merger of Vistara into Air India is poised to progress, with final approval for foreign direct investment (FDI) from Singapore Airlines (SIA) anticipated as early as Saturday. This approval will enable SIA, previously holding a 49% stake in Vistara, to secure a 25.
1% share in the merged airline by investing ₹2,059 crore. The Tata Group will retain the remaining 74.9% stake in Air India.
As reported by TOI, all necessary regulatory approvals, including those from the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA), have already been obtained. Once the government grants FDI clearance, the merged airline is expected to announce specific merger timelines to its passengers, particularly those who have booked Vistara flights beyond the merger date. These passengers will receive updates on new Air India flight numbers and schedules.
Sources have informed TOI’s Saurabh Sinha that the merger is likely to occur after Diwali, around November 1, to minimize disruptions during the peak festive travel season. The period following Diwali up until the onset of winter fog, typically around December 20, is considered optimal for the merger, allowing the airline to resolve any initial issues before facing the additional challenges of winter weather conditions. Vistara’s fleet.