Air India-Vistara merger announced: Tatas to hold 74.9% stake in new firm
Air India-Vistara merger announced: Tatas to hold 74.9% stake in the new firm, to become first full-service and low-cost airline
Air India and Vistara Airlines are about to merge. The Tatas will hold 74.9% and Singapore Airlines (SIA) will hold 25.1% in the new firm. The new firm will be named AI-Vistara-AI Express-AirAsia India Private Limited (AAIPL). Tata Sons and SIA announced this on Tuesday. He said that a target has been set to complete this process by 2024.
Air India (including Air India Express and Air Asia India) and Vistara have a total of 218 widebody and narrowbody aircraft serving 38 international and 52 domestic destinations. Vistara is a 51:49 joint venture between Tata Sons and Singapore Airlines Limited.
It was established in 2013 and is India's leading full-service carrier with international operations in the Middle East, Asia and Europe. Post-merger, Air India will be the only Indian airline group to operate both full-service and low-cost passenger service.
Tata Sons Chairman N Chandrasekaran said, “The merger of Vistara and Air India is a significant milestone in our journey to make Air India a world-class airline. We are transforming Air India with the aim of providing a great experience to every customer. As part of the transformation, Air India is expanding both its network and fleet.
Chandrasekaran said, “We are excited by the opportunity to build a stronger Air India that will provide both full-service and low-cost-service on domestic and international routes. We would like to thank Singapore Airlines for its continued partnership.
India's aviation market is currently the third largest market in the world. It is expected to double in the next 10 years. The new AI will be the largest international and second-largest domestic airline (in terms of passengers). There is a plan to triple the fleet size in the next 5 years.