Vistara Airlines will be merging with Air India from November 12, 2024.
| Photo Credit: R.V. Moorthy

Vistara will merge with Air India from November 12, when its operations will be carried out by Air India and all bookings will be redirected to Air India’s website.

Starting September 3, passengers will no longer be able to book tickets with Vistara for travel on or after November 12.

These details were shared in an email from Vistara’s CEO Vinod Kannan to the airline’s employees.

The announcement followed soon after Singapore International Airlines sharing an update on the merger and informing in a press statement that the Indian government had given its nod for its FDI into Air India.

On June 6, the NCLT in an order granted its approval for the merger and allowed a period of nine months for the dissolution of the former. Vistara’s flying permit from the Director General Civil Aviation (DGCA) expires in December 2024.

Tata Sons Pvt. Ltd. will hold 73.38% stake in the merged entity, and Singapore Airlines another 25.1%.

“This approval, along with other governmental and regulatory approvals received to-date, marks a significant development towards the completion of the merger,” the SIA said in a statement.

Singapore Airlines on Friday (August 30, 2024) said it has received approval from the Indian government for the foreign direct investment as part of the proposed merger of Vistara with Air India, a deal that will create one of the world’s largest airline groups.
| Photo Credit: Reuters

Singapore Airlines on Friday (August 30, 2024) said it has received approval from the Indian government for the foreign direct investment (FDI) as part of the proposed merger of Vistara with Air India, a deal that will create one of the world’s largest airline groups.

With the clearance in place, the merger that will see Singapore Airlines acquiring a 25.1% stake in Air India, is expected to be completed by the end of this year.

The proposed merger was announced in November 2022.

Air India is owned by Tata Group and Vistara is a 51:49 joint venture between Tatas and Singapore Airlines.

In a regulatory filing on Friday (August 30, 2024), Singapore Airlines (SIA) said it has received approval from the Government of India for Foreign Direct Investment (FDI) into the enlarged Air India as part of the proposed merger.

“The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the proposed merger,” the airline said in the filing to the Singapore Stock Exchange.

The airline also said the completion of the merger continues to be subject to compliance by the parties with applicable Indian laws, which is currently expected to be completed in the next few months.

“At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024,” it added.

According to Singapore Airlines, the parties are in discussions to extend the long stop date for the completion of the merger. Earlier, it was expected to be October 31, 2024.

The merger, which will create one of the biggest airline groups, was approved by the National Company Law Tribunal (NCLT) in June.

In March, Singapore’s competition regulator CCCS gave a conditional nod for the proposed deal.

Prior to that in September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.

“SIA will make the necessary announcement(s) upon completion of the proposed merger or in the event that there are other significant developments,” the filing said on Friday (August 30, 2024).

New Delhi:

Vistara has offered voluntary retirement as well as voluntary separation schemes for its non-flying staff, ahead of the full service carrier’s merger with Air India, according to officials.

A joint venture between the Tatas and Singapore Airlines, Vistara has around more than 6,500 employees, including permanent and contract staff.

The Voluntary Retirement Scheme (VRS) and Voluntary Separation Scheme (VSS) have been offered for the non-flying permanent employees. Eligible staff can apply for the schemes till August 23, they said.

While VRS is for those who have completed five years of service, VSS is for the staff who are yet to complete five-year service at the airline.

The schemes are similar to those offered by the Tata Group-owned Air India earlier this month.

The schemes are not be applicable for pilots, cabin crew and those holding licences for carrying out their duties.

There was no official comment from Vistara on the schemes. The airline started flying in 2015.

Earlier this month, sources had said about 600 non-flying staff of Air India and Vistara are likely to be impacted by the two airlines’ mega-merger, and efforts will be made to provide job opportunities to the affected employees within Air India group and Tata companies.

Tata Group-owned loss-making full-service carriers — Air India and Vistara — together have more than 23,000 employees.

Meanwhile, the fitment exercise — which involves the evaluation of the roles and responsibilities of staff of both airlines — in the run-up to the merger has been going on for the past few months. The exercise takes into account an individual’s prior experience, performance and other factors.

On May 12, Air India CEO and MD Campbell Wilson, along with Vistara CEO Vinod Kannan, held a one-and-a-half-hour town hall meeting with employees of both carriers about the proposed merger.

At that time, Wilson and Kannan also assured that the fitment, or assignment, of existing employees into the new structure was being done based on merit and competency.

The merger, which will create one of the biggest airline groups, was announced in November 2022. Once the deal is complete, Singapore Airlines will have a 25.1 per cent stake in Air India. Vistara is a joint venture between Singapore Airlines and the Tata Group.

In June, the National Company Law Tribunal (NCLT) cleared the merger, and in March, Singapore’s competition regulator CCCS gave a conditional nod for the proposed deal.

Earlier in September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)