SIA and Tata intend to complete the merger of Indian carriers by March 2024, subject to regulatory approval.
SIA intends to fully finance this investment from its internal cash resources, which as of September 30, 2022 amounted to SGD 17.5 billion, or SGD 12 .75 billion USD.
SIA and Tata also agreed to participate in additional capital injections, if required, to fund the growth and operation of the expanded Air India in 2023 and 2024.
SIA intends to fully finance any additional investment from its internal cash resources. Singapore Airlines Chief Executive Officer Go Chun Fong said: “Tata Sons — one of the most famous and respected names in India. Our collaboration to create Vistara in 2013 has resulted in a market-leading full-service company that has won numerous international awards in a short time».
“With this merger, we have the opportunity to deepen our relationship with Tata and be directly involved in a new phase of growth in the Indian aviation market. We will work together to support Air India's transformation program, unleash its significant potential and restore its position as a leading airline on the global stage.
Tata Sons Chairman Natarajan Chandrasekaran, in turn, stressed: “The merger Vistara and Air India is an important milestone in our journey to transform Air India into a truly world class airline. We are transforming Air India to provide a great service to every customer. As part of the transformation, Air India will expand its route network and aircraft fleet, improve the safety, reliability and timeliness of flights.
It is known that the updated Air India plans to operate as a traditional carrier with a full range of services, and as a low-cost carrier on domestic and international routes.