Singapore Regulator Gives Conditional Approval for Air India-Vistara Merger

Singapore's competition regulator, the Competition and Consumer Commission of Singapore (CCCS), has granted conditional approval for the proposed merger of Air India and Vistara. The merger, announced in November 2022, involves Singapore Airlines acquiring a 25.1% stake in Air India. This approval marks a significant milestone in the process of completing the transaction.

Representative image

Addressing Competition Concerns

To address potential anti-competition concerns, Air India, Singapore Airlines, and Vistara have made several commitments to the CCCS. These commitments include maintaining capacity on specific routes at pre-pandemic levels, such as Singapore-Delhi, Singapore-Mumbai, Singapore-Chennai, and Singapore-Tiruchirapalli. The parties have also agreed to appoint an independent auditor to monitor compliance and submit regular reports.

Singapore Airlines Welcomes Approval

In response to the CCCS approval, a Singapore Airlines spokesperson expressed their satisfaction and highlighted that the proposed merger is progressing, subject to foreign direct investment and other regulatory approvals. The merger aligns with Singapore Airlines' strategy to strengthen its presence in India, enhance its multi-hub strategy, and continue participating in the growing aviation market.

CCI Approval and Expected Timeline

In September 2023, the Competition Commission of India (CCI) also approved the deal, subject to certain conditions. Air India and Singapore Airlines committed to maintaining minimum capacity on various domestic and international routes as part of their commitments to the CCI. The merger is expected to be completed by mid-2025, with all legal approvals anticipated by the middle of this year, as stated by Vistara CEO Vinod Kannan in January 2024.

The conditional approval granted by the CCCS brings the proposed merger of Air India and Vistara closer to completion. With the necessary commitments in place to address competition concerns, the merger is poised to bolster Singapore Airlines' presence in India and contribute to the growth of the aviation industry in the region.