Air India-Vistara merger: NCLT approves move, paves way for world's largest airline groups from Tata
Air India and Vistara, forming one of the largest airline groups globally, according to a PTI report.Following the merger announced in November 2022, Singapore Airlines will hold a 25.1 percent stake in Air India. Vistara is a joint venture between Singapore Airlines and Tata Group.Also Read | Air India to operate as merged entity from 2025, no Vistara brand by year-endThe Chandigarh bench of the NCLT issued a 31-page order approving the "composite scheme of arrangement" involving Talace, Air India, and Vistara — all part of the Tata Group.
Air India expects the merger to be finalised by the end of this year.A two-member bench confirmed that the merger scheme had secured necessary approvals from shareholders and creditors of both airlines. It also received approvals from the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA).
Additionally, no significant objections were raised by the Income Tax department or any other parties.Also Read | Vistara Paris-Mumbai flight gets bomb threat; lands at airport amid emergency alert“Accordingly, a sanction is hereby granted to the 'Composite Scheme of Arrangement' amongst the petitioner companies and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013," the NCLT order said. It also specifies that the scheme shall be binding on the companies and their shareholders.The order states that Vistara will dissolve without undergoing the winding-up process after the merger, following receipt of necessary approvals and security clearances, within nine months from the date of the order.Also Read | 2023 airline champs: Vistara grew 1.5 times pre-covid but IndiGo unbeatable“The Transferor
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