Air India and Vistara Begin Merger Process, Expected to Complete by March 2024

Deloitte and AZB Partners are working on regulatory compliance, as the merger needs approval from competition regulators in countries where both airlines operate. Sources say team managers and members have been assessed, and the next level of employees will be evaluated for their roles. The merger, which was announced last year, is expected to be completed by March 2024.
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According to The Economic Times, Air India and Vistara Airlines have begun the integration process in order to expedite the merger. According to the report, senior executives from both airlines, along with consulting firm Deloitte, have begun the process, with AZB Partners focusing on regulatory compliance.

Air India and Vistara Begin Merger Process

The merger of the two airlines must be approved by competition authorities in the countries where both airlines operate.

Assessing Roles of Employees

Sources closely following the development have told the ET that team managers and members reporting directly to management have already been evaluated, and the next level of employees will be evaluated for their prospective roles in the coming weeks.

According to the sources, because the two airlines have executives in the same role, it must be carefully considered who will be given leadership or managerial responsibilities.

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Merger Announced Last Year

Singapore Airlines (SIA) and the Tata Group announced the Vistara-Air India merger process last year. The SIA will own 25.1% of the merged entity, and the transaction is expected to be completed by March of next year. The Tata Group and SIA have a 51:49 joint venture called Vistara.

Funding for Investment

The SIA previously stated that it intends to fund this investment entirely with its internal cash resources, which stood at S$17.5 billion as of September 30, 2022.

“SIA and Tata have also agreed to participate in additional capital injections, if required, to fund the growth and operations of the enlarged Air India in FY2022/23 and FY2023/24,” it added.

Mega Order Placed by Air India

In another development, Air India recently placed a mega order with Airbus and Boeing for 470 aircraft in order to become a dominant player in the global market.

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The deal includes 210 single-aisle A320neos and 40 wide-body A350s, and the airline will be the first Indian carrier to operate the wide-body aircraft.

Bottomline

The merging process between Air India and Vistara is likely to be a smooth affair because Air India has inducted many former Vistara employees, and CEO and MD Campbell Wilson have worked with both SIA and its low-cost carrier Scoot. The integration process is expected to be completed by March 2024, subject to regulatory approval.

(With Inputs From ET)


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Manish Khandelwal
Manish Khandelwal

Manish Khandelwal, a travel-tech enthusiast with over a decade of experience in the travel industry. Founder and Editor-in-Chief of Travelobiz.com, he's passionate about writing.

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