Tata to bolster Air India with Vistara merger

Indian conglomerate Tata Group is merging Air India with Vistara, its joint venture with Singapore Airlines, to create a bigger full-service carrier that will strengthen its presence in domestic and international skies. Autos-to-steel conglomerate Tata will hold 74.9% of the combined entity, while SIA will own the remaining 25.1%, the Indian group said Tuesday. SIA will invest $252m into Air India as part of the deal, Tata said, with the pair aiming to complete the merger by March 2024, subject to regulatory approvals including from India's aviation ministry, central bank and antitrust watchdog. Tata Group Chairman N Chandrasekaran said the merger was an important milestone in efforts to rebuild Air India into a "world-class airline". "Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performance," Chandrasekaran said. Air India, with its maharajah mascot, was once known for its lavishly decorated planes and stellar service. But its reputation declined in the mid-2000s as financial troubles mounted. It was criticised for business class seats in poor repair, customers faced delays and staff and suppliers were not always paid on time. The airline, founded by JRD Tata in 1932 and nationalised in 1953, returned to the Tatas' control in January. The proposed merger will create a stronger rival to India's dominant carrier IndiGo and give SIA, which lacks a domestic flying market, a more solid foothold in one of the world's fastest-growing aviation markets.<br/>