Singapore Airlines denies report of raising stake in Air India

Singapore Airlines (SIA) has denied a report of raising stake in Air India which stands at 25.1 per cent. The stake was acquired as part of Vistara’s merger with Air India. SIA’s statement came after a media report claimed that SIA was planning to raise its stake from 25.1 per cent to 40 per cent citing three people familiar with the information. 

A spokesperson for SIA in response to a query by Republic said, “There is no change in SIA’s position from the November 2022 announcement. The regulatory approval process for the merger of Air India and Vistara is underway, and we have nothing further to add.”

Merger of Vistara and Air India

The merger of Vistara into Air India is under review by the Competition Commission of India (CCI) into a single entity (Air India) with SIA investing Rs 2,059 crore. The salt-to-steel conglomerate Tata Group operates three airlines in India - Air India (with Air India Express as its low-cost subsidiary), Air Asia India and Vistara (a 51:49 joint venture between Tata Sons and SIA).

In April, Tata Sons approached India’s anti-trust watchdog Competition Commission of India (CCI) for regulatory approval for the merger of Vistara into Air India. However, before key approvals are granted, the relevant authorities will look into possible market dangers and assess further features of this merger in relation to its competitors. If the CCI is not satisfied with the components of the merger, it will enact corrective procedures to rectify any issues it has.

VT-EXO, an Air India Airbus A320 NEO (Star Alliance Livery) landing at Singapore's Changi Airport (SIN) | Image Credit: Shutterstock

SIA in a press release stated, “SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals” with N Chandrasekaran, Chairman of Tata Sons stating that "the merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline. We are transforming Air India, with the aim of providing great customer experience, every time, for every customer.”

A Vistara Airbus A320neo flight landing at Thiruvananthapuram Airport | Image Credit: Shutterstock

“With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market,” said Goh Choon Phong, the Chief Executive Officer (CEO) of Singapore Airlines.