Indian skies will now be left with just one full-service carrier
Indian aviation space will come down to just one from five in a span of over 17 years.
Also, the merger-which will see Vistara's 49% owner Singapore Airlines holding 25.1% stake in Air India post the merger-will mark the sunset of another Indian airline jointly owned by an overseas carrier after the liberalisation of foreign direct investment norms.
In 2012, Prime Minister Manmohan Singh-led UPA government allowed foreign airlines to buy up to 49% in a domestic carrier, which later resulted in the now defunct Jet Airways securing 24% stake from Gulf carrier Etihad besides the birth of AirAsia India and Vistara.
Vistara is also the only full-service carrier to start operations in the last 10 years. Since the merger of full-service carrier (FSC) Indian Airlines with Air India in 2007, at least five FSCs dotted the Indian skies.
As years passed by, Kingfisher and Air Sahara faded away while Vistara took flight in January 2015. Kingfisher went belly up in 2012 while Air Sahara, which was acquired by Jet Airways and renamed as JetLite, sank with Jet Airways in 2019. FSC Jet Airways that flew for 25 years before getting grounded in April 2019 due to financial turbulence is set to be liquidated. From November 12, the enlarged Air India will remain the country's lone full-service player.
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