Singapore Airlines: Navigating the Skies of Indian Aviation

On Tuesday, Singapore Airlines revealed the ongoing progress of the proposed merger between Air India and Vistara, eagerly awaiting Foreign Direct Investment (FDI) and other regulatory green lights.

During the announcement of its December quarter results, the airline underscored that the merger stands to fortify its position in the Indian aviation sector. This strategic move aligns seamlessly with their multi-hub strategy, poised to propel direct expansion in the swiftly growing aviation market.

"The proposed merger of Air India and Vistara is in progress, pending foreign direct investment and other regulatory approvals. When completed, it will give SIA (Singapore Airlines) a 25.1 percent stake in an enlarged Air India Group with a significant presence in all key Indian airline market segments,"

the airline stated.

Vistara, a joint venture between Singapore Airlines and Tata Group, is set to undergo the merger with Air India, with Singapore Airlines poised to acquire a substantial 25.1 percent stake in the latter.

Merger Completion on the Horizon

In a recent update, Vistara CEO Vinod Kannan projected the merger's completion by mid-2025. Anticipated legal approvals for the transaction are expected to materialize between March and October this year.

Notably, the Competition Commission of India (CCI) greenlit the merger of Vistara-owner Tata Singapore Airlines Limited (SIA) Airlines with Air India on September 1, 2023.

During the Oct-Dec quarter of 2023, the SIA Group reported an operating profit of SGD 609 million, a modest decline of 19.3 percent compared to the year-ago period. However, the group's net profit experienced a 4.9 percent rise to SGD 659 million, attributed to factors like a lower tax expense, aircraft disposal surplus, and spare engines.

Stay tuned for more updates as Singapore Airlines navigates the intricate landscape of the Indian aviation industry, marking a significant milestone with the Air India-Vistara merger.