New Delhi: The National Company Law Tribunal (NCLT) has approved the merger of Air India and Vistara, paving the way for the formation of the country's largest international carrier. The merger, initially announced in November 2022, will see Singapore Airlines hold a 25.1 percent stake in the combined entity. Vistara is a joint venture between Singapore Airlines and the Tata Group.
The Chandigarh bench of the NCLT issued a comprehensive 31-page order approving the "composite scheme of arrangement" involving Talace, Air India, and Vistara—all under the Tata Group umbrella. Air India anticipates finalizing the merger by the end of this year.
The two-member bench confirmed that the merger scheme had secured all necessary approvals from shareholders and creditors of both airlines. Additionally, it received the green light from the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA). Notably, there were no significant objections from the Income Tax department or any other parties involved.
The combined fleet of the merged Air India-Vistara entity will total 218 aircraft, positioning it as India's largest international airline and the second-largest domestic carrier. Currently, the American Airlines Group holds the title of the world's largest carrier with a fleet of 1,521 aircraft, while IndiGo remains India's largest domestic carrier with a fleet of 350 aircraft.
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