Singapore Airlines and conglomerate Tata Sons, which jointly launched
Indian carrier Vistara in 2015, have agreed to merge Vistara with Air
India, which Tata acquired in January 2022, the carriers announced this week.
Singapore is also set to invest $250 million for a 25.1
per cent stake in the enlarged Air India Group, which also includes Air
India Express and AirAsia India. The carriers expect to complete the
merger by March 2024, subject to regulatory approval.
In addition,
Singapore and Tata have agreed to make additional capital investments,
if needed, through the end of the 2024 fiscal year. Based on Singapore's
stake, that amount could be up to $615 million, payable only after the
completion of the merger, according to the carrier.
The merger will "bolster SIA's presence in India [and] strengthen its multi-hub strategy," according to Singapore Airlines.
Once
merged, the Air India Group would have 218 widebody and narrowbody
aircraft serving 38 international and 52 domestic markets, according to SIA.
Air India to expand service
Further, Air India announced last
week it was expanding its network in Europe and the United
States.
For Europe, Air India will add
new thrice-weekly flights between Mumbai and Paris and four weekly
flights between Mumbai and Frankfurt. Launch and sale dates
will be announced soon.
The carrier is also set to resume from
1 February thrice-weekly flights between Delhi and Milan, from 18 February thrice-weekly flights between Delhi and Vienna, and from 1 March thrice-weekly flights between Delhi and Copenhagen.
Bookings are now
open for these three routes. All of these flights and the Paris and
Frankfurt routes will be operated with Boeing 787-8 Dreamliner aircraft
featuring 18 business-class and 238 economy-class seats, according to
Air India.
Meanwhile, a new daily route between Mumbai and New York's John
F. Kennedy International Airport will launch on 14 February 2023. The new
service will join the carrier's Delhi-JFK route and four weekly flights
to Newark Liberty International Airport. The Mumbai route will operate
using Boeing 777-200LR aircraft.