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The Tata Group on Tuesday announced the consolidation of Vistara with Air India by March 2024. According to the details of the merger reported in the media, Singapore Airlines (SIA), which currently holds 49 percent of Vistara, will invest Rs 2,059 crore to get 25.1 percent in the merged Air India.
The combined fleet of Air India (including Air India Express and AirAsia India) and Vistara will be 218 wide and narrow-body aircraft, making it the second-largest domestic player and the country’s largest international carrier. The airline will be serving 38 international and 52 domestic destinations. Air India will be the only Indian airline to fly both the full-service and low-cost fleets. The merger will be a win-win as it covers the entire spectrum of offerings and the only routes that overlap are between India and Singapore.
The merger will have an impact on the aviation sector in India. For a cash-strapped industry, Air India with the backing of SIA and the Tata Group will have money backing their venture. Reports say that the airline is likely to order 300 narrow-body jets, the largest orders ever in aviation history.
The promoters of Air India have agreed to participate in additional capital injections to fund the growth of the merged Air India over the next two years. Reports quoting SIA officials say the airline is looking at additional capital injection to the tune of $615 million, payable only after the completion of the merger.
After the merger, the Indian
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