Singapore Airlines (SIA) and Tata Sons (Tata) have agreed to merge Air India and Vistara, with SIA investing Rs 2,059 crore in Air India as part of the transaction. This will give SIA a 25.1% stake in an enlarged Air India group with a significant presence in all major market segments. SIA and Tata aim to complete the merger by March 2024, subject to regulatory approval.
SIA intends to fully finance this investment with its internal cash resources, amounting to S$17.5 billion by September 30, 2022.
SIA and Tata have also agreed to participate in additional capital injection, if required, to fund the growth and operations of the enhanced Air India in FY23 and FY24. Based on SIA’s 25.1% stake after closing, the portion of any additional capital injection payable only after completion of the merger could be up to Rs 5,020 crore.
Tata Sons Chairman N Chandrasekaran said, “The merger of Vistara and Air India is a significant milestone in our journey to make Air India a truly world-class airline. We are transforming Air India with the aim of providing great customer experience.” Huh.” Every time, for every customer. As part of the transformation, Air India is focusing on enhancing both its network and fleet, improving its customer proposition, enhancing safety, reliability and on-time performance. We are excited by the opportunity to build a strong Air India that will offer both full service and low cost service on domestic and international routes. We would like to thank Singapore Airlines for their continued partnership.