Singapore Airlines gets FDI approval for Air India-Vistara merger

Singapore Airlines gets FDI approval: Singapore Airlines (SIA) said on Friday it has received approval from the Indian government for foreign direct investment, as part of a merger in which Vistara, its 49 per cent-owned joint venture with Tata, will be absorbed into Air India.

Singapore's flagship carrier had announced the plan to merge Vistara and Tata-owned Air India in November 2022, in a bid to create a dominant full-service airline in the domestic and international markets.

"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 a statement.

Both Indian and Singaporean antitrust regulators have cleared the deal, which is expected to be completed by the end of 2024.

SIA will hold a 25.1 per cent stake in the combined group after the consolidation.

Meanwhile, welcoming the nod, an Air India spokesperson said: “Air India welcomes the Union Cabinet’s approval for the foreign direct investment by Singapore Airlines in Air India. This is an important milestone that facilitates the merger process between Vistara and Air India, and the broader transformation of the Air India Group.”