The merger of the airlines operated by the Tata Group, Vistara and Air India, received approval from the Competition Commission of India (CCI) on Friday.

Due to this huge development, Air India now has the opportunity to overtake IndiGo as the second-largest domestic and international airline in India.

This judgement comes after several months of examination, during which the CCI had asked Air India to explain why the proposed merger with Vistara shouldn’t be the subject of a probe due to worries about competition in the aviation industry back in June.

“C-2023/04/1022 CCI approves the merger of Tata SIA Airlines into Air India, and the acquisition of certain shareholdings in Air India by Singapore Airlines, subject to compliance of voluntary commitments offered by the parties,” the regulatory body wrote in a tweet on X (previously known as Twitter) on Friday evening.

The Tata Group’s full-service carriers Vistara and Air India share a close relationship.

Vistara is owned by Singapore Airlines (SIA) to the tune of 49%. According to this deal, SIA would contribute Rs 2,059 crore to Air India’s expanded share capital, giving the airline a 25.1% interest.

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Tata Sons will own the 74.9 percent remaining controlling ownership in the newly created company.

Source: ANI

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