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Air India and Vistara to merge, dissolution in nine months

Air India and Vistara to merge, dissolution in nine months

The National Company Law Tribunal (NCLT) has approved the merger of Air India and Vistara. This merger has received all necessary approvals and will see Tata Sons holding a 74.9% stake in the combined entity.

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Air India and Vistara to merge, dissolution in nine months Air India and Vistara to merge, dissolution in nine months

The National Company Law Tribunal (NCLT), Chandigarh Bench, today approved the mega-merger between Tata Sons-owned Air India and Vistara, a joint venture between Tata Sons (51%) and Singapore Airlines (49%). 

A two-member NCLT bench confirmed that the merger scheme secured necessary approvals from shareholders, creditors, the Competition Commission of India (CCI), and the Directorate General of Civil Aviation (DGCA), with no significant objections raised.

The tribunal has allowed the airlines to initiate the integration of their operations, networks, human resources, and fleet deployments. As per the deal terms, Tata Sons will hold a 74.9% stake in the combined entity, while Singapore Airlines will own 25.1%.

The NCLT order states that Vistara will dissolve without winding up after the merger, following necessary approvals and security clearances within nine months. The companies must ensure FDI approval by Singapore Airlines and security clearances from DGCA/MOCA within this period.

Air India CEO Campbell Wilson expressed optimism about the integration process, stating they are working closely with authorities. The airlines have already integrated 120 pilots and announced plans for South Asia's largest aviation academy and an aircraft maintenance facility in Bengaluru, partnering with SIA Engineering.

Alongside the Air India-Vistara merger, the Tata Group is consolidating its budget carriers, Air India Express and AIX Connect, under one low-cost airline. 

Edited By: Aparmita
Published On: Jun 07, 2024