CCI approves merger of Vistara into Air India

The commission also approved the acquisition of certain shareholding by Singapore Airlines in Air India on September 1.

The Competition of Commission of India (CCI) has approved the merger of Tata SIA Airlines or commonly known as Vistara into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties.

The proposed combination will entail the merger of Tata SIA Airlines or Vistara (TSAL) into Air India Limited (AIL/Air India), with AIL being the surviving entity (Merged Entity).

The consideration of the merger will be the acquisition of shares in AIL by Singapore Airlines Limited (SIA) and Tata Sons Private Limited (TSPL). Further, the acquisition of additional shares in the Merged Entity by SIA pursuant to a preferential allotment will also be completed.

Tata Sons is the investment holding company and completed the acquisition of AIL on 27 January 2022.

Air India (including its wholly owned subsidiaries Air India Express Ltd. and AIX Connect Private Limited), is engaged in the business of providing domestic scheduled air passenger transport service, international scheduled air passenger transport service (AIX Connect Private Limited does not provide this service), air cargo transport services; and charter flight services.

TSAL is a joint venture between TSPL and SIA, with TSPL and SIA holding 51% and 49% of the total shareholding, respectively. TSAL operates under the brand name “Vistara”.

TSAL is engaged in the business of providing the following services: domestic scheduled air passenger transport service, international scheduled air passenger transport service, air cargo transport services, and charter flight services (domestic and international).

The CCI approved the proposed combination subject to compliance of voluntary commitments offered by the parties.