Summary
- The Competition Commission of India has approved the merger of Air India and Vistara, subject to certain conditions voluntarily committed by each airlines.
- Air India and Vistara’s merger could potentially dominate India’s domestic market and push out competitors like SpiceJet, AirAsia, and GoAir.
- The approval comes after extensive review from the CCI and the federal government, which previously expressed concerns over monopolization.
The Competition Commission of India (CCI) has approved the proposed merger of Air India and its Tata Group sibling carrier, Vistara. As reported by Reuters, the merger stays subject to certain conditions each airlines have voluntarily committed to.
Approval details
Initially unveiled last November as a part of a three way partnership between Indian conglomerate Tata Group and Singapore Airlines, the CCI stepped in earlier this yr following concerns over a possible monopolizing of India’s aviation industry. Combined, Air India and Vistara would sweep up a good portion of India’s domestic market, potentially pushing out competitors akin to SpiceJet, AirAsia, and GoAir.
Announced in a post on the social media site X on Friday, the CCI confirmed the deal. In an announcement shared on CCI’s website, the anti-trust body noted that further details will likely be released soon.
Photo: Nicolas Economou | Shutterstock.
Air India was fully acquired by Tata Group in 2022, with the conglomerate swiftly outlining plans to modernize the struggling airline and reform it right into a In November 2022, Tata announced it could consolidate each airlines to create India’s largest international airline.
The controversial merger notably required extensive review from the CCI and the federal government. In August, Air India chief executive Campbell Wilson and Tata Group General Counsel Sidharth Sharma met with CCI chief Ravnet Kaur to comb over the finer details of the deal. As reported by Reuters, discussions included pricing strategies and the potential market power the merger would have; nonetheless, any remaining concerns appear to have been dismissed.
Air India has been approached for comment.
Closer ties
Despite the recent green light, Air India and Vistara have been regularly constructing a better relationship, with Vistara CEO Vinod Kannan anticipating all approvals by April 2024.
Photo: Airbus
In August, Tata Group was reported to be requesting some Air India Boeing 787 pilots to start operating Vistara’s Dreamliner fleet. First reported by The Economic Times, the consent requests saw each carriers begin to integrate crew members based out of Mumbai’s Chhatrapati Shivaji Maharaj International Airport (BOM). An unnamed source explained to the outlet,
It stays unclear if Air India and Vistara will retain separate brand identities or merge into one airline. The Indian flag carrier notably unveiled recent branding last month, overhauling its classic livery in favor of an updated and refreshed image under Tata Group. The primary designs are set to be applied to its upcoming Airbus A350 widebodies, expected later this yr.
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