Singapore Airlines Ltd (SIA) said on Tuesday it would emerge as a 25.1% owner of Air India as part of a deal that would merge its Vistara full-service airline joint venture with Tata Sons into India’s national carrier.
SIA will invest $250 million into Air India as part of the transaction, the Singaporean carrier said in a statement, with the pair aiming to complete the merger by March 2024 subject to regulatory approvals.
The agreement will create a stronger rival to the country’s dominant carrier IndiGo and give the Singaporean airline, which lacks a domestic flying market, a more solid foothold in one of the world’s fastest-growing aviation markets.
