TBM Staff - Mumbai The merger between Vistara and Air India is expected to receive final approval from the Indian Cabinet as early as this Saturday.
The Cabinet’s decision will pave the way for Singapore Airlines (SIA) to make a significant investment in the merged entity. SIA, which currently holds a 49% stake in Vistara, will invest INR 2,059 crore to acquire a 25.1% stake in the merged airline. Tata Sons will retain the remaining 74.9% stake in Air India.
All necessary approvals from regulatory bodies, including the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA), have already been secured. Once the Cabinet approves the Foreign Direct Investment (FDI), Air India and Vistara will begin notifying passengers about the merger timeline. Customers with bookings on Vistara flights scheduled to operate after the merger date will be informed of changes to their flight details, including new Air India flight numbers and timings.
Sources indicate that the merger is likely to take place after Diwali (November 1) to avoid the peak festive travel season and potential complications from foggy weather in late December. Vistara’s fleet of 70 aircraft will continue to fly in its current livery until heavy maintenance checks, when the planes will be repainted in Air India’s new colours.
The merger comes after discussions about potentially delaying the integration to allow time for upgrading Air India’s fleet. However, due to growing concerns among Vistara employees about job security and management roles, the decision has been made to complete the merger before the end of the year.
Passengers who have booked premium services on Vistara, such as business or premium economy class, should not face downgrades due to the merger. The airlines are working to ensure a smooth transition, maintaining service standards and minimising disruptions.
Additionally, Vistara has already informed passengers about the transfer of frequent flyer miles to Air India’s loyalty program, and many Vistara employees have begun moving to Air India’s new headquarters in Gurgaon.
The merger aims to consolidate the strengths of both airlines and enhance Air India’s market position as a full-service carrier.
