Singapore Airlines Limited (SGX:C6L) on Feb. 20 2024 said the proposed merger of Air India and Vistara is in progress, and is awaiting foreign direct investment and other regulatory approvals. Vistara is a joint venture between Singapore Airlines and Tata Group.

The merger of Vistara with Air India under a deal, wherein Singapore Airlines will acquire a 25.1% stake in Air India, was announced in November 2022. While announcing its December quarter results, Singapore Airlines said the merger will bolster its presence in India, strengthen its multi-hub strategy, and allow it to continue participating directly in this large and fast-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% stake in an enlarged Air India Group with a significant presence in all key Indian airline market segments," the release said. In January, Vistara CEO Vinod Kannan said the merger is expected to be completed by mid-2025, and all legal approvals for the transaction are anticipated by the middle of this year.