2024-07-10 06:27:45
New DelhiTata Group’s Air India has finally got the green signal from DGCA. Now Tata and Singapore Airlines’ joint venture airline company Vistara will merge with Air India. This merger has already got the permission of Competition Commission of India or CCI. Air India was earlier a Tata Group company. Later it was taken over by the Government of India. A few years ago, the Government of India sold it. Now it has come back to Tata.
Permission received from DGCA
The country’s aviation sector regulator DGCA (Director General, Civil Aviation) on Monday approved the merger of Vistara into Air India and erstwhile Air Asia India into Air India Express. Now only approval is required for foreign investment in Air India by Singapore Airlines to meet the merger target by the end of the year. While SIA currently has a 49% stake in Vistara, it will have a 25.1% stake in Air India after the merger.
expressed gratitude
Air India CEO and MD Campbell Wilson said on the occasion: “This is an important milestone in the merger of Tata Group airlines and we are grateful for the support received from the Ministry of Civil Aviation in terms of timely approvals for the merger process.” Wilson said the DGCA had guided its teams with a safety-first change management approach in line with the Tata Group’s safety-first priorities.
Approval has already been received from CCI
The proposal for the merger of Air India with Vistara got the approval of the Competition Commission of India in September last year. It was just waiting for the green signal from the DGCA. It is worth mentioning that both Air India and Vistara are full service carriers. Whereas Air India and Air India Express are low fare airlines.
What will happen after the merger
After the merger, Air India (Vistara merged into it) will remain a full service carrier. Air India Express (Air Asia India merged into it) will be its low-cost arm. The airline was required to obtain DGCA permission before pilots could undergo crossover training when changing companies or aircraft types.