Recently, Singapore Airlines received approval from the Indian government for foreign direct investment (FDI) in the Air India- Vistara merger. As part of a strategic collaboration, Vistara and its 49%- -%—owned joint venture with Tata were acquired by Air India. The merger will be completed by the end of 2024. Initially, the merger was announced back in November 2022 as an integral part of Tata Group’s strategic plan. One of the integral parts of the merger is Singapore Airlines acquiring a stake of 25.1% in Air India.
The merger is set to create India’s largest full-service carrier by facilitating the transfer of more than 120 pilots. More than 60 Vistara employees are already taking roles in Air India. Currently, the employee ratio between Air India and Vistara is 12:5, and over 7,000 employees have been assessed for the new structure. While the primary motive is to expand the airline industry, this strategic alignment is also undertaken for AI transformation, marking a new era in the Indian aviation industry.
After this merger, Club Vistara will collaborate with Air India’s flying return program. It will transfer CV points balance and tier points in a 1:1 ratio. These transferred points will actively remain valid for at least one year, counting from the migration date.
In a filing with the Singapore Stock Exchange, Airlines stated, “The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to date, represents a significant development towards the completion of the proposed merger.”
