Mumbai/New Delhi: In a move that will create India’s largest international carrier and second largest domestic carrier in terms of market share and aircraft fleet, the owners of Air India and Vistara have agreed to combine their local airline operations. As part of the deal, Tata Sons will hold 74.9% in the combined entity while Singapore Airlines (SIA) will own 25.1%.
Currently, Tata Sons owns 100% in Air India and 51% in Vistara, with SIA holding the balance 49%. Tata Sons and SIA did not disclose the merger ratio but the latter said it will invest Rs 2,059 crore ($250 million) in the combined entity as part of the transaction.
After the merger is concluded, SIA would continue to be the only international carrier to hold a sizeable stake in an Indian airline, unless other local players decide to bring in a foreign partner on board as investor.
