Singapore Airlines denies interest in increasing shareholding in Air India group post-merger
Singapore Airlines has refuted claims suggesting its intention to acquire a larger shareholding in the Air India group after the merger between Air India and Vistara. As a minority shareholder of Vistara, the airline set to be merged into Air India, Singapore Airlines has dismissed any plans to raise its stake in Air India beyond the previously agreed figure of 25.1%.
Reports initially surfaced, citing sources from India’s Mint, indicating that Singapore Airlines was exploring the possibility of gradually increasing its shareholding in the Indian airline group up to 40%. However, these claims were subsequently denied by a spokesperson from Singapore Airlines, as reported by Reuters. The airline insists there will be no alterations to the desired shareholding structure of the group.
The merger plans were announced in November 2022 when Air India and Singapore Airlines revealed that Vistara, predominantly owned by the Indian conglomerate Tata Sons, would be integrated into Air India by October 2024. As part of the privatization process, Tata Sons had acquired full control of Air India, liberating the loss-making airline from the Indian government’s ownership.
Following this development, Air India presented an ambitious growth strategy, which involved merging with Vistara and placing orders with Airbus and Boeing. The airline committed to purchasing a total of 470 aircraft from the two manufacturers in February 2023, comprising both narrow-body and wide-body models.
In conjunction with the merger, Singapore Airlines had planned to invest up to INR 50.2 billion ($612.9 million) into Air India, contingent on various factors, including the implementation and progress of Air India’s business plan.
Goh Choon Phong, the Chief Executive Officer (CEO) of Singapore Airlines, expressed enthusiasm about the merger, stating, “With this consolidation, we have an opportunity to strengthen our ties with Tata and actively participate in an exciting new phase of growth in India’s aviation market.”