Company Tribunal of India approves merger of Air India and Vistara

BENGALURU (Reuters) – India’s Enterprise Tribunal on Thursday approved the merger of full-service carrier Vistara with larger rival Air India in a June 6 order, bringing the two Tata group airlines a step closer to finalizing the transaction.

The merger, first announced in November 2022, will see Vistara, which is 49% owned by Singapore Airlines, merged into Air India, giving Singapore Airlines a 25.1% stake in the combined entity.

“Sanction is hereby granted to the ‘Composite Scheme of Arrangement’ between the petitioner companies and their respective shareholders,” the National Company Law Tribunal (NCLT) said in its order.

The NCLT order stated that Air India must complete the merger within nine months.

Antitrust authorities in India and Singapore have approved the transaction. The merger is expected to be finalized by the end of the year, Air India CEO Campbell Wilson said earlier this week.

Air India Group, which also includes low-cost airlines Air India Express and Air Asia India, has ordered a staggering 470 planes from Airbus and Boeing as it looks to beat local rivals such as IndiGo and Middle Eastern carriers that dominate outbound traffic. India.

(Reporting by Nandan Mandayam and Kashish Tandon in Bengaluru; Editing by Savio D’Souza)