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Legal arbiter clears Air India/Vistara merger
June 12th 2024
India’s National Company Law Tribunal (NCLT) has approved the integration of Tata Group airlines, Air India and Vistara, into one carrier that will operate as Air India. Read More » Tata announced plans to merge the two airlines and reorganise their ownership structure in November 2022. Tata owns 97.2% of Air India with an Air India employee trust holding 2.8% equity. It is a 51% shareholder of Vistara, with Singapore Airlines (SIA) owning the remaining 49%. “Sanction is hereby granted to the ‘composite scheme of arrangement’,” the NCLT said in a decision published late last week. Under the new structure, Tata will own 73.4% of the merged airline, SIA 25.1% and an Air India employee trust 1.5%. The merger has been approved by the Competition Commission of India and the Directorate General of Civil Aviation. The Competition and Consumer Commission of Singapore granted conditional approval of the merger last March after securing capacity commitments from all parties on several India-Singapore routes.
