Singapore Airlines to Acquire 25.1% Stake in Air India

The Indian government has granted approval for Singapore Airlines (SQ) to acquire a 25.1% stake in the expanded Air India (AI), following Air India’s merger with Vistara (UK). Singapore Airlines announced this development in a regulatory filing on August 30, reported ch-aviation.com.

As part of the agreement, Singapore Airlines will swap its 49% ownership in Vistara for a minority stake in the significantly larger Air India. Both Vistara and Air India are predominantly owned by Tata Sons.

The filing noted, “The foreign direct investment approval, along with antitrust and merger control clearances and other regulatory approvals received to date, marks a crucial step towards finalizing the merger.” The merger is now expected to be completed by the end of 2024. The parties involved are negotiating an extension of the merger’s long stop date, previously set for October 31, 2024, to align with this new anticipated completion timeline.

Approval has been granted by competition authorities in both India and Singapore, facilitating Singapore Airlines’ deeper entry into the rapidly growing Indian aviation market. Vistara is expected to continue operating under its brand until November 11, after which it will fully integrate into Air India’s operations.

This strategic move positions Singapore Airlines to leverage its stake in the expanded Air India, providing enhanced access to a key market and strengthening its position in the aviation industry.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com, Singapore Airlines