Goodbye…Vistara: Vistara’s Final Flight Takes Off Today, Air India to Operate from Tomorrow
India’s third-largest airline, Vistara, will operate its final flight today, November 11. From November 12 onwards, Air India will manage all of Vistara’s flights. Ticket bookings for these flights will also be available exclusively through Air India’s website.
The merger agreement between Air India and Vistara was signed in November 2022, receiving approval from the Competition Commission of India (CCI) in September 2023.
With this merger, the Air India Group has become the country’s second-largest domestic airline by market share, following IndiGo, and has emerged as the largest international airline in India.
Air India Becomes First Full-Service and Low-Cost Airline After Merger
Following the merger, Air India will become the only Indian airline group to offer both full-service and low-cost passenger services.
Together, Air India (including Air India Express and AirAsia India) and Vistara operate a fleet of 218 wide-body and narrow-body aircraft, serving 38 international and 52 domestic destinations.
Vistara was established in 2013 and has grown to become India’s leading full-service carrier, operating internationally to regions like the Middle East and Europe.
Singapore Airlines to Invest an Additional ₹3,194.5 Crore in Air India
Following the merger, Singapore Airlines will make an additional investment of ₹3,194.5 crore in Air India. The company disclosed this information in its exchange filing.
Tata Holds 74.9% and SIA Holds 25.1% Stake in Air India Post-Merger
After the merger of the two airlines, Singapore Airlines will hold a 25.1% stake in Air India. The company has made a direct investment of $250 million (approximately ₹2,096 crore) for this stake. At the same time, Tata Group will own a 74.9% stake in the new venture.
Before the deal, Tata Sons held a 51% stake in Vistara, while Singapore Airlines held 49%. The new entity will be named AI-Vistara-AI Express-AirAsia India Private Limited (AAIPL).
