Vistara, the joint venture of Tata Group and Singapore Airlines, has officially begun the process of merging its staff with Air India. The move aims to enhance Tata's aviation empire and compete head-on with the market leader, IndiGo.
Vinod Kannan, CEO of Vistara, confirmed the commencement of the staff integration process and expressed optimism about obtaining the necessary regulatory clearances by April 2024.
The decision to merge Vistara and Air India was initially announced in November, with the intent to provide Tata Group with increased capacity and a formidable presence in the budget carrier segment.
To facilitate the merger, Singapore Airlines will receive a 25.1% stake in the combined entity and will divest its interest in Vistara. Additionally, the airline will make a significant investment of $250 million, further solidifying its commitment to the partnership.
However, Vistara still needs to secure the necessary approvals from competition authorities in Singapore to ensure compliance with regulatory requirements. The airline remains optimistic about receiving the green light to proceed smoothly with the merger and establish a robust position in the Indian aviation landscape.