Singapore Airlines and Tata Sons to merge Air India and Vistara

Singapore Airlines (SIA) and Tata Sons (Tata) have agreed to merge Air India and Vistara, with SIA also investing INR 20,585 million in Air India as part of the transaction. This would give SIA a 25.1% stake in an enlarged Air India group. SIA and Tata aim to complete the merger by March 2024.

SIA intends to fully fund this investment with its internal cash resources, which stood at S$17.5 billion as of 30 September 2022.

The merger would bolster SIA’s presence in India, strengthen its multi-hub strategy, and allow it to continue participating directly in a large and fast-growing aviation market.