Home/Financial Investment/Text
Guoabong Investment:Vistara-Air India merger likely to be completed by mid-2025

 2024-11-06  Read 46  Comment 0

Abstract: The merger of Vistara and Air India is likely to be completed latest by mid-2025 even as all approvals are expected this year. "We believe all the approvals from a legal perspective should come through sometime in the first half of this yearGu

Vistara-Air India merger likely to be completed by mid-2025

The merger of Vistara and Air India is likely to be completed latest by mid-2025 even as all approvals are expected this year.

"We believe all the approvals from a legal perspective should come through sometime in the first half of this yearGuoabong Investment. From an operational perspective, we are working with authorities to see how we can operationalise this (merger). The airline is looking at this year or early next year as the operational merger, or it could stretch through the middle of next year," Vistara CEO Vinod Kannan said.

The merger is an effort to consolidate the Tata Group's aviation business under which Air India and Vistara will merge to form a single full-service entity and Air India Express and AirAsia India will form a low-cost airline which will be a subsidiary of Air IndiaJinnai Wealth Management. Singapore Airlines (SIA), which has a 49% stake in Vistara, will hold 25.1% of the combined company.Kanpur Wealth Management

Under the proposal, Air India will allot 3,702,338,129 fully paid-up equity shares to SIA at a face value of Rs 4 each at a price of Rs 5.56 each. In total, SIA will invest $267 million in Air India.

The Competition Commission of India (CCI) approved the merger between the airlines in September 2023, allowing the Tata Group to form a single, full-service carrier

The companies will receive regulatory clearances, which include those from the National Company Law Tribunal, Ministry of Civil Aviation and Department for Promotion of Industry and Internal Trade by mid-2024. However, an operational merger will take time as merging networks and operations of airlines takes time, Kannan explained. However, the airlines will start integration of network and operations after the regulatory approvals are received.

A team of senior executives from Air India and Vistara, along with consultancy firm Deloitte, has started the process of integration of human resources while law firm AZB Partners is working on legal and regulatory compliance.

As part of the human integration process, the non-flying staff of Vistara has been appraised through a process called Hogan Test.

Kannan said that the airline will continue to expand into domestic and European routes and will add three aircraft this year.


Surat Investment

Notice:Article by "Bank loan business | Financial investment Products". Please indicate the source of the article in the form of a link;

Original link:http://ronglinyoujia.com/FI/129.html

Tags:

  • Article104
  • Comment0
  • Browse1664
About Us

Copyright © Focusing on global investment and financial management, we provide online access services to our clients to facilitate online access services!

Financial
Platform
Stock
Investment
Product
Gold
Management
Contact Us
Totline:
Address:
Email:
Code:
Copyright http://www.ronglinyoujia.com Bank loan business Rights Reserved.