Singapore Airlines Ltd (SIA) said on Tuesday it would emerge as a 25.1% owner of Air India as part of a deal that would merge its Vistara full-service airline joint venture with Tata Sons into India’s national carrier.
Singapore Airlines, which owns minority share in Vistara in its joint venture with Tata, will own around 25 per cent of the enlarged Air India, into which it’ll infuse over Rs 2,000 crore.
At present, 51 per cent share in Vistara is with Tata, while Singapore Airlines owns the remaining 49 per cent in the join venture set up in 2013.
For Vistara, the two owners “aim to complete the merger by March 2024, subject to regulatory approvals”, said a Singapore Airlines release.
Tata also owns low-cost carriers Air India Express and AirAsia India, both of which will be merged under the Air India brand, too, by 2024.
This will take the fleet size to 218, putting togetaher Air India’s 113 with AirAsia India’s 28, Vistara’s 53, and Air India Express’s 24. It will then be India’s largest international carrier and second largest domestic carrier, Tata Sons said.
