National Company Law Tribunal (NCLT) has approved merger of Air India and Vistara paving the way for India’s largest international airline.
The Law Tribunal approved the order in which Vistara will be dissolved without a ;winding-up’ process. Vistara is a JV between Tata Group and Singapore Airlines (SIA). SIA currently holds 49% percent stake in Vistara. Following the merger SIA will hold a 25.1% stake in Air India. This will happen following receipts of necessary approvals and security clearances.
With a combined fleet of 218 aircraft, the merged Air India-Vistara entity will become India’s largest international carrier and second-largest domestic carrier, as per a statement from the Tata Group.
Currently Air India and Vistara operate flights to the same destinations around the same time and use different resources such as airport slots, separate check in counters etc. The synergy will remove such duplicities and create a more efficient operation.
Sources said that last month Air India CEO Campbell Wilson told the staff in a town hall that about 7,000 employees of Vistara have been assessed for their new positions in Air India and the transfer is likely to begin from June. Sixty employees of Vistara have already been moved to Air India. Around 120 pilots of both the airlines have been transferred between the two airlines.
Both India’s and Singapore’s antitrust regulators have cleared the deal. The merger is expected to be completed by the end of the year.