Union Cabinet Approves Singapore Airlines' FDI In Air India(Image: X @airindia)

Singapore Airlines (SIA) announced on Friday that the Indian government has approved Foreign Direct Investment (FDI) for the merger between Vistara and Tata-owned Air India. Currently, SIA and Tata hold a 49:51 stake in Vistara and as a result of the merger, SIA will acquire a 25.1% stake in the combined entity, investing over Rs 2,000 crore.

Air India has expressed its gratitude towards the Union Cabinet for approving the Foreign Direct Investment (FDI) by Singapore Airlines which is considered a crucial step towards the merger with Vistara. According to the Air India spokesperson, this marks pivotal progress in the integration process and paves the way for the comprehensive transformation of the Air India Group.

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Air India stated in the Singapore Stock Exchange filing that the FDI approval with merger control clearance and antitrust as well as another regulatory grant further completes the significant development of the proposed merger.

It was first announced in November 2024, that the merger would be expected to launch by the end of 2024. However, Singapore Airlines noticed that the merger may take time as it has to comply with the regulatory rules and other government procedures. In September 2023, The Competition Commission of India (CCI) approved the deal and The National Company Law Tribunal (NCLT) approved the merger in June 2024. The filing said on Friday that the SIA will update the changes and announce upon the completion of the proposed merger.

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Following the merger, All  Vistara passengers on November 12, and after the date will fly with Air India but the aircraft, schedule and operating crew will remain unchanged. However, the flight numbers will be replaced with Air India codes. The airline also said that, as the merger process moves ahead, the customers will be provided with regular updates through the website and other social media accounts.