Singapore Airlines (SIA) will inject an additional $267 million into Air India, an investment that will give SIA a 25.1% stake in the Indian company. Air India, which has made headlines in recent days by placing the largest aircraft order in history, is in the process of being acquired by the Indian multinational Tata and being merged with another Indian company Vistara Airlines.
This had been created thanks to a joint venture between Tata and Singapore Airlines… The name of Air India will be preserved and that of Vistara will disappear.
Through this transaction, SIA strengthens its already very strong partnership with Tata and will immediately acquire a strategic stake in an entity four to five times larger than Vistara, the airline said.
With 218 aircraft, the future “merged entity will be four to five times larger than Vistara, with a strong presence in all key airline segments in India. The proposed merger will strengthen SIA’s presence in India, strengthen its multi-hub strategy and allow it to continue to participate directly in this large and rapidly growing Indian aviation market.”
