Merger of Air India and Vistara still delayed, Singapore Airline gives new update
The merger of Vistara with Air India was announced in November 2022. Now Singapore Airlines has given an update regarding this merger. The airline said that work is being done on the merger proposal of Air India and Vistara. Foreign direct investment and other regulatory approvals are awaited. Let us know in detail in this report.
Regarding the merger of Air India and Vistara, Singapore Airlines has provided an update. According to Singapore Airlines, work is being done on the plan to combine Air India and Vistara. In this context, other regulatory approvals as well as foreign direct investment are awaited.
Vistara is a joint venture between Tata Group and Singapore Airlines. The merger of Vistara and Air India was declared in November 2022 by an agreement. Singapore Airlines will acquire more than 25.1% of Air India in this deal.
Singapore Airlines stated that the merger would boost its presence in India when it released its results for the December quarter. The airline will be able to directly participate in the vast and rapidly expanding aviation industry thanks to the strengthening of its multi-hub strategy.
Singapore Airlines said in a press release "The proposed merger of Air India and Vistara is in progress. FDI and other regulatory approvals are awaited. Upon completion, it will give SIA (Singapore Airlines) a 25.1 per cent stake in an expanded Air India group with a significant presence in all "
In January, Vistara CEO Vinod Kannan said the merger was expected to be completed by mid-2025. All legal approvals for the transaction are expected to be received by the middle of this year.
Singapore Airlines reported an operating profit of SGD 609 million in the December quarter, a decline of 19.3 per cent compared to the year-ago period. Whereas the airlines' net profit increased by 4.9 per cent to SGD 659 million. This is mainly due to lower tax expenditure.
Singapore Airlines' revenue increased to a record SGD 5,082 million. It crossed the US$5,000 million mark for the first time. Singapore Airlines said demand for air travel remains strong in the last quarter of fiscal year 2023/24 and the first quarter of fiscal year 2024/25.
Singapore Airlines said in a press release that higher fuel prices and inflationary pressures, as well as supply chain disruptions, present a more challenging operating cost environment for airlines globally.
