According to Singapore Airlines, the proposed merger of Air India and Vistara is still on track, subject to regulatory and competition authority approvals in a number of jurisdictions. After the purchase is completed, Singapore Airlines (SIA) would hold 25.1 percent of Air India. The Tata Group owns 51% of Vistara, while SIA owns the remaining 49%.
According to SIA Group, the transaction has already been approved by the Competition Commission of India for September 2023. Other regulatory organizations and competition authorities, including India's Directorate General of Civil Aviation, the Ministry of Civil Aviation, the National Company Law Tribunal, and the Singapore Competition and Consumer Commission, must yet approve it.
Goh Choon Phong, CEO of Singapore Airlines, expressed confidence in Air India as a long-term investment potential. He mentioned increased Indian travel interest, as well as the airline's valuable slots and rights, as contributing factors to this potential possibility.
Given India's status as one of the world's fastest-growing civil aviation industries, after the merger is completed, SIA will be a major player in all major categories of the Indian airline market. Air India, which will be acquired by the Tata Group in January 2022, has lofty goals for resuscitation and development.
In the first half of fiscal year 2023-24, SIA Group recorded a 55.4 percent increase in net profit to SGD 1,441 million, up from USD 927 million in the same period the previous year. Total revenue climbed by 8.9% to SGD 9,162 million in the same time last year, from SGD 8,417 million.
The group operates 202 aircraft as of September 30, comprising 195 passenger planes and seven freighters. SIA had 140 passenger planes and seven freighters in its fleet, while Scoot had 55 planes. In addition, the group has 96 aircraft on order.
