Singapore Airlines (SIA) will invest an additional ₹3,194.5 crore in Air India following the completion of the merger with Vistara, solidifying its 25.1% stake in the enlarged carrier. The merger, announced on November 29, 2022, is set to conclude on November 11, 2024, creating a consolidated entity under Tata Group’s Air India that will serve as a major player across all segments of India’s aviation market.
Vistara, a full-service airline established as a joint venture between Tata Group and SIA in 2015, has seen SIA holding a 49% share. With the merger, SIA will contribute its existing stake in Vistara, along with ₹2,058.5 crore in cash, to gain a 25.1% equity interest in Air India. Additionally, SIA expects a non-cash accounting gain of approximately 1.1 billion Singapore dollars, along with equity in Air India’s financial outcomes.
The agreement also includes SIA’s commitment to cover its share of Air India’s prior funding requirements, amounting to up to ₹5,020 crore. According to SIA’s statement, the post-merger investment will be directed through new Air India shares, expected to occur by November 2024. Future funding will be considered based on Air India’s operational needs and available funding strategies.
