New Delhi :
The Competition Commission of India (CCI) has given the green light to the merger of Tata Singapore Airlines Limited (SIA) Airlines, the parent company of Vistara, with Air India.
This significant development was announced on September 1 through CCI’s social media platform.
However, the merger is contingent upon the parties’ adherence to certain voluntary commitments.
As part of this merger, SIA will invest ₹2,059 crore in Air India, securing a 25.1% shareholding in the national carrier.
The merger process is scheduled to conclude by March 2024.
Tata Group’s Ambitious Move
Tata Sons Chairman N Chandrasekaran expressed his enthusiasm for the merger, describing it as a vital step in making Air India a world-class airline. This consolidation aims to boost Air India’s network expansion, fleet enhancement, and overall customer experience while focusing on safety, reliability, and on-time performance.
The merger holds the potential to bring significant economies of scale to both Vistara and Air India, allowing Singapore Airlines to access new global slots.
Meanwhile, Tata Sons aims to consolidate its aviation business balance sheets through this strategic merger, with a potential for brand identity evolution in the long run.
Tata Group’s Aviation Vision
With four airlines under its belt, including Air India, Air India Express, AirAsia India, and Vistara, the Tata Group is working on a comprehensive airline consolidation strategy.
This strategy aims to drive cost savings, optimize aircraft utilization, enhance route efficiencies, and secure a larger market share to compete with India’s dominant player, IndiGo, which currently commands a 59% market share.
As Air India embarks on its rebranding journey, unveiling a fresh brand identity and aircraft livery, the airline is poised to represent a bold vision for its future, symbolized by a vibrant color palette and a chakra-inspired design.
The transition to this new identity is set to begin with the introduction of the Airbus A350 into the fleet in December 2023.
