Singapore Airlines receives FDI approval for Vistara-Air India merger

Singapore Airlines (SIA) announced on Friday that it has received approval from the Indian government for Foreign Direct Investment (FDI) as part of the proposed merger between Vistara and Air India. This merger is set to create one of the world’s largest airline groups.

With this clearance, Singapore Airlines will acquire a 25.1% stake in Air India, marking a major step forward in the merger process, which was first announced in November 2022. The merger, involving Tata Group-owned Air India and Vistara—a 51:49 joint venture between Tata Group and Singapore Airlines—is expected to be finalized by the end of 2024.

In a regulatory filing to the Singapore Stock Exchange, Singapore Airlines stated, “The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to date, represent a significant development towards the completion of the proposed merger.”

The airline further noted that while the approval process is progressing, the merger’s completion is still subject to compliance with applicable Indian laws. The merger is currently expected to be finalized by the end of this year, though discussions are ongoing to potentially extend the long stop date from the initial target of October 31, 2024.