Now, Air India to run Vistara amid FDI nod

Cross-functional teams from Air India and Vistara have been working together for many months to make the transition of aircraft, flying crew, ground-based colleagues and, most importantly, our valued customers, into the new Air India as seamless as possible - Campbell Wilson, CEO & MD, Air India

New Delhi/Singapore: India has cleared Singapore Airline’s Rs2,058.5-crore foreign direct investment (FDI) in Air India Group as part of merger of the nearly 10-year-old full service carrier Vistara with Air India, a deal that will create one of the world’s largest airline groups. Vistara, a joint venture between Tata Group and Singapore Airlines, will fly into the sunset on November 11 under the merger deal that will see the Singapore carrier owning 25.1 per cent stake in the Air India Group. On Friday, Singapore Airlines (SIA) said the Indian government has approved its proposed Foreign Direct Investment (FDI) into the enlarged Air India Group as part of the ongoing merger of Air India and Vistara.

The approval marks a significant development towards the completion of the merger, which is expected to be completed by the end of this year, SIA said in a release. With regulatory approvals in place, Air India CEO and MD Campbell Wilson told the employees on Friday that November 12 has been set as the date for the movement of aircraft and crew of Vistara to Air India. Loss-making Vistara, which has a fleet of 70 planes and flies to 50 destinations, will be operating the last flight under its brand on November 11. It had a domestic market share of 10 per cent in July.

“Starting September 3, 2024, customers will, progressively, no longer be able to make bookings with Vistara for travel on or after 12 November 2024,” Vistara said in a release. Thereafter, Vistara aircraft will be operated by Air India and bookings for the routes operated by these planes will be redirected to Air India’s website. “Vistara will continue to take bookings and operate flights as usual till 11 November 2024,” the release said.

The government’s approval for SIA’s Rs2,058.5-crore FDI is the last major clearance for the merger that was announced in November 2022.