SA to take 25 percent Air India stake in Vistara merger

SINGAPORE AIRLINES announced Tuesday (29) it will take a 25 percent stake in Air India, streamlining its aviation partnership with Tata Group as the industrial behemoth works to revive the beleaguered national carrier's fortunes.

Air India was in January returned to the ownership of its founders at Tata, a sprawling family-owned conglomerate with interests ranging from tea to steel, after decades as a monumental drain on the public purse.

Tata and Singapore Airlines already jointly own Vistara, a full-service carrier that has nearly 10 percent of India's domestic market, with a respective 51-49 percent share.

Both companies said they had agreed on a deal to fold Vistara into Air India by March 2024, with Singapore Airlines taking a 25.1 percent stake in the merged carrier in exchange for an equity injection of 20.6 billion rupees ($250 million).

‘The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline,' N. Chandrasekaran, chairman of holding company Tata Sons, said in a statement.