Air India-Vistara Merger Finalized with Rs 3,195 Cr Investment from Singapore Airlines
In a major development for India’s aviation industry, the merger between Air India and Vistara has officially been completed. Singapore Airlines, which held a 49% stake in Vistara, has invested Rs 3,195 Cr in the newly integrated airline, consolidating its position as one of the most significant stakeholders in the company. The merger, which was first announced in November 2022, will see the newly formed entity operate over 5,600 weekly flights across 90+ destinations.
This merger, following the integration of Air India Express and AIX Connect, is part of the Tata Group’s long-term vision to build a world-class aviation company with a strong Indian presence. The new entity will be the country’s largest international carrier, connecting passengers to over 800 destinations globally through codeshare partnerships with more than 75 airlines.
Singapore Airlines (SIA) continues to hold a minority stake of 25.1% in the enlarged entity, while the Tata Group has full operational control. The merged Air India-Vistara airline will now have a combined fleet of 300 aircraft, covering both domestic and international routes. The merger aims to provide improved services and enhanced connectivity to its growing customer base.
In addition, frequent flyer programs from both airlines have been merged, with more than 4 million Club Vistara members transferred to Air India’s Flying Returns program, which has been rebranded as the “Maharaja Club.”
The completion of the Air India-Vistara merger marks a significant milestone in the consolidation of India’s aviation industry, ensuring competitive growth and better services for travelers worldwide.
