Tata-owned airline company Air India and Vistara may soon merge with each other. For this, Tat has sought permission from its shareholders. It is being said that shareholders will vote on September 23 to give approval. The decision regarding the merger will be taken on the basis of the number of votes of the shareholders.
According to The Economic Times (ET) report, Air India and Vistaar have received approval from creditors. After this, both these companies have moved towards obtaining permission from the Registrar and Aviation Regulator DGCA. The special thing is that the merger plan has already been approved by the National Company Law Tribunal and the Competition Commission of India.
Merger between the two airline companies may happen by 2024
At the same time, Tata Sons and Singapore Airlines had filed merger application with CCI in April. It was said in this application that the integration of Vistara with Air India will not bring any change in the competitive landscape. Or there will be no adverse impact on competitiveness in India. In such a situation, it is being said that the merger of both the airline companies can happen by March 2024.
There is a 51:49 joint venture between Tata Sons and SIA.
According to the consolidation plan, Air India and Vistara will together form a full service unit. While Air India Express and AirAsia India will merge to form a low-cost airline, which will be a subsidiary of Air India. At the same time, Singapore Airlines, which has 49 percent stake in Vistara, will have 25.1 percent stake in the company. Whereas, SIA will invest $267 million in Air India. Air India is wholly owned by Tata Sons, while Vistara is a 51:49 joint venture between Tata Sons and SIA.
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