New Delhi: Air India will operate all planes of Vistara from 12 November after a key Indian government approval came through to clear all hurdles for the merger.
Singapore Airlines (SIA), which owns 49 percent of Vistara in a joint venture with the Tata Group, has been allowed by the government to inject foreign direct investment (FDI) into the “enlarged” Air India venture.
In an internal communication to employees Friday, Air India CEO Wilson Campbell said, “I’m pleased to share that, last evening, we received formal approval for Singapore Airlines’ Foreign Direct Investment in the future Air India. This paves the way for us to now commence the remaining steps to merge Vistara and Air India, and is a critical milestone on our Vihaan. AI journey to create a world class, global airline with an Indian heart.”
He added that with the regulatory approvals in hand, the movement of aircraft and crew from the Vistara Air Operator Certificate to Air India has been set for 12 November, 2024.
This also means customers will not be able to make bookings on Vistara starting 12 November.
In his email, Campbell explained nothing would change for bookings and travel between now and 11 November. However, from 3 September, customers seeking to book flights departing on or after 12 November via Vistara’s website will be redirected to Air India’s site to complete the booking.
“For Vistara flights on or after 12 November 2024, the flight numbers will change to Air India ones, even though in nearly all cases the aircraft, schedule and operating crew will be unchanged until early 2025,” he said.
Campbell also said that all customers already booked on Vistara flights after 12 November will automatically have their reservations changed to Air India. This, he said, will occur in phases during September, and customers will be individually informed when this happens.
“For our Vistara colleagues, the HR teams are working on the transfer of those who have not already been seconded into Air India. As with those who have already joined, we look forward to welcoming our new Air Indians, helping them feel at home, and to having their assistance in catalysing and accelerating the new Air India,” he said.
‘Significant development,’ says Singapore Airlines
In a filing to Singapore Stock Exchange, Singapore Airlines (SIA) Friday said it had received the approval for foreign direct investment into the “enlarged AI” as part of the proposed merger of Air India and Vistara.
“The FDI Approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the Proposed Merger,” SIA said in Friday’s filing.
Air India is owned by the Tata Group and the decade-old Vistara is a 51:49 joint venture between Tatas and Singapore Airlines. On completion of the merger, SIA will hold approximately 25.1 percent in Air India.
The merger between Vistara and Tata-owned Air India was announced in November 2022, to create a commanding presence for a full-service airline in the domestic and international markets.
(Edited by Tikli Basu)
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