Following approval from the Indian government, the takeover by Air India of Vistara will go ahead the former will operate the latter's flights from November. According to the deal, the last Vistara-operated flight will take place on 11th November.
Singapore Airlines owns 49% of Vistara in a joint venture with India's Tata Group confirmed it had received approval for foreign direct investment into an expanded Air India from the Indian government. Once completed it would put to bed a merger deal that has been in the making since November 2022.
From tomorrow 3rd September customers would no longer be able to book flights on Vistara for travel on or after 12 November this year. Instead, people would be directed to Air India's site.
Singapore Airlines, which is currently the only foreign airline with a direct stake in an Indian carrier, will then hold a 25.1% stake in the combined Air India group in return for a $250 million investment. The deal was agreed in part due to the agreement that the Singaporean airline is due to invest up to 50.2 billion Indian rupees in the group once the merger is completed.
This is a key moment in the development of Singapore Airlines' overseas investments, it was only at the beginning of July that the group got approval from the Competition and Consumer Commission of Singapore (CCCS) for a commercial joint venture deal with Garuda Indonesia.
With this approval, the airlines will be able to deepen their strategic partnership on a wider range of commercial activities that will bring greater benefits to both airlines. These potentially include operating joint revenue-sharing flights between the two countries, coordinating flight schedules to offer travellers more options and seamless connectivity between Singapore and Indonesia and beyond, and exploring joint sales and marketing initiatives that provide greater value to both airlines’ customers.