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NCLT Approves Air India-Vistara Merger, Creating One of the World’s Largest Airline Groups

By  |  June 6, 2024

The National Company Law Tribunal (NCLT) has given the green light to the merger of Air India and Vistara, marking a significant milestone in the aviation industry. This merger, first announced in November 2022, will pave the way for the formation of one of the world’s largest airline groups.

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    In a comprehensive 31-page order, the Chandigarh bench of the NCLT approved the “composite scheme of arrangement” involving Talace, Air India, and Vistara, all integral parts of the Tata Group. The merger is expected to be finalized by the end of this year, according to Air India.

    A key aspect of this merger is Singapore Airlines’ 25.1 percent stake in Air India post-merger. Vistara is currently a joint venture between Singapore Airlines and Tata Group. This strategic stake by Singapore Airlines is anticipated to bring significant benefits in terms of expertise and international connectivity.

    The two-member bench of the Chandigarh NCLT highlighted that the merger scheme had already garnered necessary approvals from the shareholders and creditors of both airline companies. Moreover, essential regulatory approvals, including those from the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA), have been secured. The bench also noted that there were no substantial objections raised by the Income Tax department or any other interested parties.

    “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,” stated the NCLT order.

    The merger of Air India and Vistara is poised to reshape the aviation landscape, creating a powerhouse in the industry capable of competing on a global scale.