CCI green light to Tata SIA Airlines-Air India merger, Singapore Airlines’ stake acquisition, ET TravelWorld

[ad_1]

<p>Representative Image</p>
Representative Image

The Competition Commission of India (CCI) on September 1, granted approval for the merger of Tata SIA Airlines into Air India, along with the acquisition of a significant shareholding in Air India by Singapore Airlines. The approval is contingent on compliance with voluntary commitments made by all parties involved.

According to an official post shared by CCI, the proposed combination outlines a multifaceted arrangement: firstly, the merger of Tata SIA Airlines Limited (TSAL), operating under the brand name Vistara into Air India Limited (AIL), with AIL surviving as the amalgamated entity. Secondly, Singapore Airlines Limited (SIA) and Tata Sons Private Limited (TSPL) will acquire shares in the merged entity.

Additionally, SIA will gain further shares through a preferential allotment.

The CCI’s endorsement of this deal is subject to the fulfillment of voluntary commitments offered by the involved parties. A comprehensive order from the CCI is expected in due course.

Tata Sons Private Limited (TSPL), registered as a core investment company with the Reserve Bank of India and classified as a “Systemically Important Non-Deposit Taking Core Investment Company,” concluded the acquisition of Air India Limited (AIL), including its wholly-owned subsidiaries Air India Express Ltd. and AIX Connect Private Limited, on January 27, 2022.

Air India Limited (AIL), a prominent player in the Indian aviation sector, engages in domestic and international scheduled air passenger transport services, air cargo transport, and charter flight services, along with its subsidiaries.

Tata SIA Airlines Limited (TSAL), popularly known as Vistara operates as a joint venture between TSPL and SIA, with TSPL and SIA holding 51 per cent and 49 per cent of the total shareholding, respectively. Vistara offers domestic and international scheduled air passenger transport services, air cargo transport, and charter flight services.

Both Vistara and Air India are prominent full-service carriers and integral components of the Tata group, with Singapore Airlines holding a substantial 49 per cent stake in Vistara, as per the reports.

India, New Zealand sign MoU for civil aviation cooperation

The MoU encompasses aspects like the establishment of new flight routes, code-share services, traffic rights, and capacity entitlement. This MoU follows an Air Services Agreement initially signed between New Zealand and India in May 2016, granting New Zealand and Indian airlines service operations using varied aircraft. It is further expected to foster deeper collaboration in the aviation sector between the two nations.

Singapore Airlines (SIA) serves as the parent entity for the SIA group of companies (SIA Group), specialising in passenger and cargo air transportation, engineering services, pilot training, air charters, tour activities, merchandise sales, and related activities.This merger has undergone rigorous scrutiny by the Competition Commission of India (CCI), which had expressed concerns about potential monopolistic consequences within the domestic aviation sector.

The merger plans were initially disclosed by the Tata Group in November of the preceding year, indicating its intention to merge Vistara with Air India. This was accompanied by Singapore Airlines’ intention to secure about 25.1 percent share in Air India.

Further, the formal approval request for this proposed merger was officially submitted to the CCI in April 2023.

If this merger is successfully executed, Air India will make its way up to become the largest international carrier in the country and the second-largest player in India’s domestic aviation landscape, followed by IndiGo.

This deal holds the potential to reshape India’s aviation industry significantly.

  • Published On Sep 2, 2023 at 10:01 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETTravelWorld App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App


[ad_2]
Source link

About admin

Check Also

Cruiser Safaris For Owners Of Resorts & Tour Agents Banned, ET TravelWorld News, ET TravelWorld

[ad_1] The Tadoba-Andhari Tiger Reserve (TATR) ban on the newly-introduced Cruiser safari vehicles for resort …

Leave a Reply

Your email address will not be published. Required fields are marked *