Air India-Vistara merger cleared for takeoff

Jigsaw teamwork concept macro shot

Plans to merge Vistara airlines with Tata-owned Air India by March 2024 are well underfoot, creating a larger, more comprehensive entity that will cater to multiple segments of India’s burgeoning aviation industry. Singapore Airlines, which owns a minority share in Vistara as part of a joint venture with Tata, will own around 25% of the new-look Air India, into which it’ll infuse over D 2,000 crore. Currently, Singapore Airlines owns 49% of Vistara, with Tata owning the rest.

Tata also owns low-cost carriers Air India Express and AirAsia India, and intends to merge these under the Air India brand too as part of its aviation plans. This will take Air India’s fleet size to 218, combining Air India’s 113 planes with AirAsia India’s 28, Vistara’s 53, and Air India Express’s 24. This will make it India’s largest international carrier and second-largest domestic carrier, with plans to triple its fleet of 113 over the next five years.


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