Singapore Airlines’ Big Move into India | Air India-Vistara Merger Approved | Airline Giants Unite

Singapore Airlines has just received the green light from the Indian government for the foreign direct investment to move forward with a major deal that could shake up the global aviation market. What does this mean for you?Well, by the end of this year, Air India and Vistara are expected to merge, creating one of the world's largest airline groups.

Singapore Airlines is going to take a 25.1% stake in Air India, with the merger expected to wrap up by the end of this year. This big announcement first came in November 2022, but now, with the official approval in hand, things are moving forward fast.

Air India, as you might know, is part of the Tata Group, while Vistara is a joint venture between Tata and Singapore Airlines, with the latter holding a 49% stake. So, this merger is a big deal, not just for these companies but for the entire airline industry.

Singapore Airlines made it official in a filing with the Singapore Stock Exchange, noting that they’ve cleared several crucial regulatory hurdles, including anti-trust and merger control approvals. But there’s still a bit more work to do, as both parties have to stay in line with Indian laws to finalize the merger, which is now expected to close by the end of 2024.

There was an earlier expectation to seal the deal by October 31, 2024, but ongoing discussions might push that timeline a bit. Meanwhile, both Singapore and India’s competition authorities have already given their conditional thumbs-up.

This merger, which has been in the pipeline for over 18 months, is part of a broader trend of airline consolidations worldwide. It’s not just about Air India and Vistara, look at Alaska Air and Hawaiian Airlines’ $1.9 billion merger, or Korean Air’s $1.4 billion bid for Asiana Airlines.

So, why does this matter to you? Well If you're one of those fans of Vistara then hurry up...you can buy tickets for the airline only until the 3rd of September for trips extending through till the 11th of November. After which Vistara will cease to exist.
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