Air India-Vistara merger announced: Tatas will hold 74.9% stake in the new firm, becoming the first full-service and low-cost airline

Air India and Vistara Airlines are about to merge. Tata Group will hold 74.9% and Singapore Airlines will hold 25.1% stake in the new firm. The new firm will be named AI-Vistara-AI Express-AirAsia India Private Limited (AAIPL). Tata Sons and Singapore Airlines (SIA) announced this on Tuesday. He said that a target has been set to complete this process by 2024.

World class airline

Tata Sons Chairman N Chandrasekaran said, “The merger of Vistara and Air India is a significant milestone in our journey to make Air India a truly world class airline. We are transforming Air India with a vision to deliver great customer experience to every customer, every time. As part of the transformation, Air India is expanding both its network and fleet.

Chandrasekaran said, “We are excited by the opportunity to build a stronger Air India that will provide both full-service and low-cost-service on domestic and international routes. We would like to thank Singapore Airlines for their continued partnership.

First full-service and low-cost airline

Air India (including Air India Express and AirAsia India) and Vistara have a total of 218 widebody and narrowbody aircraft serving 38 international and 52 domestic destinations. Post merger, Air India will be the only Indian airline group to operate both full-service and low-cost passenger service.

India is the world’s third largest aviation market

India’s aviation market is currently the third largest in the world and is expected to double in the next 10 years. The new AI will be the largest international and second largest domestic airline (in terms of passengers). There are plans to triple the fleet size in the next five years.