Tata Approaches CCI For Air India-Vistara Merger

The Tata Group has approached Competition Commission of India for approval of the merger of Air India with Vistara,a joint venture with Singapore Airlines (SIA).

The merger, which was announced in November, will strengthen IndiGo's competition in India and help SIA maintain its position in one of the aviation industry's fastest-growing countries.

According to a filing posted on CCI's website on Wednesday, Tata would control a majority position of 51 percent in the combined company's issued and paid-up equity shares, while SIA will hold a minority stake of 25.1 percent.
The CCI had already approved a merger of Air India Express with AirAsia India, which will be the low cost airline. The combined company will be the full service arm of Air India.

Air India's notice informed that the merger won't alter the competitive environment or have a negative impact on competition in India.

The most recent statistics show that Air India and Vistara have a combined domestic market share of just under 25%, making them the second-largest airline in the nation, behind Indigo, the market leader. Air India Express and AIX Connect, originally known as Air Asia India, are currently being merged by the Tata group. Both the full-service airline Air India and the low-cost airline Air India Express will be part of the Tata stable once both mergers are finalised.