In Short:
The National Company Law Tribunal (NCLT) approved the merger of Vistara with Air India. They aim to finish the merger by December, but NCLT has given them nine months to get all necessary approvals, including foreign direct investment approval and security clearances. Tata Sons and Singapore Airlines plan to merge the airlines and SIA will invest ₹2,059 crore in Air India, holding 25.1% shareholding after the consolidation.
Exciting News: Vistara Granted Approval for Merger with Air India!
Great news for all aviation enthusiasts! The National Company Law Tribunal (NCLT) has given the green light to Vistara for its merger with Air India. This approval paves the way for a significant development in the Indian airline industry.
Merger Timeline
Vistara and Air India are aiming to complete the integration by the end of December. However, NCLT has extended the timeline to nine months for the merger process. This extension allows the airlines to secure necessary permissions, including foreign direct investment approval, security clearances, and other approvals from the civil aviation ministry.
Partnership Announcement
Back in November 2022, Tata Sons and Singapore Airlines (SIA) revealed their plans to merge the two airlines. This strategic partnership is set to create a strong force in the competitive aviation market.
Investment and Shareholding
As part of the merger deal, SIA will be investing a whopping ₹2,059 crore in Air India. After the consolidation, SIA will hold a significant 25.1 per cent shareholding in Air India. This investment highlights the confidence and commitment of SIA towards the future prospects of Air India.
Accelerated Timeline
Originally scheduled for completion by March 2024, the merger process has now been fast-tracked with the recent approvals. This accelerated timeline signifies the determination of all parties involved to streamline the merger process efficiently.
Keep an eye out for further updates on this exciting merger between Vistara and Air India. The aviation landscape in India is set for a major transformation with this strategic alliance!
