Tuesday, 12 November 2024

End of the road for India's Vistara

The merger of Vistara into Air India was scheduled for completion yesterday, the 11th of November 2024. As of this morning, Vistara ceases to exist. Tata SIA Airlines Limited, known as Vistara, was an Indian full-service airline headquartered in Gurgaon, with its main hub at Indira Gandhi International Airport.

The airline, a joint venture between Tata Sons and Singapore Airlines, began operations on the 9th of January 2015, with its first flight from Delhi to Mumbai. Vistara operated in 50 destinations with a fleet that included Airbus A320neo, Airbus A321neo, and Boeing 787-9 aircraft. Following the merger, Singapore Airlines will hold a 25.1% stake in the combined entity of Air India.

A specialized "war room" has been set up to ensure a smooth transition and prevent any service disruptions. This involves teams from customer service, engineering, and operations. The regulatory aspects are also being finalized, including updates to Air India's air operator certificate.

The merger, which was announced in November 2023 by SIA and Tata Sons, entails an agreement for SIA to invest up to INR 50,200 million (equivalent to SGD 880 million, based on exchange rates at the time) to maintain a 25.1% stake in Air India. This includes SIA's share of any funding previously provided by Tata, along with the associated funding costs, before the merger's completion.


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