New Delhi: Singapore Airlines (SIA) will invest an additional Rs 3194.5 crore in Tata Group-owned Air India. The investment will follow the Air India-Vistara merger and is scheduled to be completed by November 11, 2024. After the merger, Singapore Airlines (SIA) will hold a 25.1 percent stake in Extended Air India. It is understood that after this merger, Air India will be the only full-service carrier in the country. Vistara includes a 49 percent stake in SIA and a cash payment of Rs 2058.5 crore, which will be settled through the merger.
Vistara, a full-service carrier, commenced flights on 9 January 2015. It is primarily a joint venture between Tata and Singapore Airlines where Tata holds a 49 percent stake.
20,585 million (Rs 2058.5 crore) in cash in exchange for 49 percent interest in Vistara and 25.1 percent equity interest in Extended Air India, Singapore Airlines (SIA) Group said on Friday. Information about the merger in a press release issued on Friday revealed that from November 12, the airlines will no longer operate under the Vistara brand but will operate extended Air India flights as a full-service carrier.
After this merger, it will operate as a combined entity after an additional investment of Rs 3194.5 crore by Singapore Airlines, based on the funding to be exclusively contributed by the Tata Group to Air India.
Air India and Singapore Airlines have unanimously agreed to jointly extend their codeshare agreement. The joint network of Air India and Singapore Airlines will also include 11 Indian cities and 40 other international destinations.