NEW DELHI: The Tata Group on Tuesday announced the consolidation/merger of its airlines, Vistara and Air India. With this amalgamation, Air India will be India's leading domestic and international carrier with a combined fleet of 218 aircraft, elevating it India's largest international carrier and second-largest domestic carrier.
Air India, an airline fully owned by Tata Sons, has been the flag carrier of India. On January 27, Tata Sons acquired a 100% share in Air India through Talace Private Limited (Talace), a wholly-owned subsidiary.
India's top full-service airline, Vistara, a 51:49 Joint Venture between Tata Sons and Singapore Airlines Limited ("SIA"), was founded in 2013 and has international operations in the Middle East, Asia, and Europe.
Vistara and Air India will merge after all necessary approvals have been received. In connection with the merger, SIA would also contribute Rs 2,059 crore to Air India. Following the consolidation, SIA will own 25.1% of the shares of Air India.
Tata Sons Chairman N. Chandrasekaran said the following on this occasion: "In our quest to transform Air India into a genuinely world-class airline, the merger of Vistara with Air India is a significant turning point. With the goal of giving each and every customer a fantastic customer experience, we are reinventing Air India. Air India is concentrating on expanding both its network and fleet as part of the transition, reworking its customer pitch, and improving safety, dependability, and on-time performance.
"The possibility of building a robust Air India that would provide full-service and affordable service on both domestic and international routes excites us. We appreciate Singapore Airlines' continuous support and would want to thank them." Chief Executive Officer of Singapore Airlines Goh Choon Phong said: "One of India's most well-known and esteemed brands is Tata Sons. Our joint efforts to establish Vistara in 2013 produced a market-leading full-service carrier that has quickly garnered numerous awards on a worldwide scale. With this combination, we have the chance to strengthen our bond with Tata and actively take part in the aviation market's exciting new growth phase in India.