Singapore Airlines receives FDI approval from India for Vistara-Air India merger

Singapore Airlines will acquire a 25.1% stake in Air India, with the merger expected to be completed by the end of this year.

India has cleared the final hurdle for Air India's merger with Vistara by approving a $360 million investment by Singapore Airlines. The Indian government has given the green light for Singapore Airlines’ foreign direct investment (FDI) in the proposed merger between Air India and Vistara.

Vistara is a joint venture between Tata Group and Singapore Airlines. As part of the deal, Singapore Airlines will acquire a 25.1% stake in Air India, with the merger expected to be completed by the end of this year.

In a filing to the Singapore Stock Exchange, the airline stated that the FDI approval, along with antitrust, merger control clearances, and other governmental and regulatory approvals received thus far, marks a significant step toward finalizing the proposed merger. However, the airline noted that the merger's completion remains subject to compliance with applicable Indian laws and is expected within the next few months, likely by the end of 2024.

Following its merger with Air India, Vistara announced that its final flight will take place on November 11. Post that, all Vistara aircraft will be managed by Air India, and bookings for the routes served by these aircraft will be transferred to Air India's website.

Starting September 3, 2024, Vistara will cease accepting bookings for travel on or after November 12, 2024.

Singapore Airlines also mentioned that discussions are underway to extend the long stop date for the merger, which was initially set for October 31, 2024.

In June 2024, National Company Law Tribunal (NCLT) approved the merger of Air India and Vistara, forming one of the largest airline conglomerates globally.