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Bloomberg
Tata Group will merge Air India Ltd with Vistara, which it jointly holds with Singapore Airlines Ltd, creating a behemoth in one of the world’s fastest-growing aviation markets.
The deal will give Singapore Air a 25.1% stake in the merged carrier for an investment of $250 million, according to an exchange filing. Both the partners have agreed to inject fresh capital if needed in the coming two years in the enlarged Air India, with Singapore Air’s share potentially as much as $615 million, according to the filing.
The integration will make Air India the country’s largest international and second-largest local carrier with a fleet of 218 aircraft, Tata Sons Pvt, group’s main holding company, said in a separate statement.