Singapore Airlines Limited (SIA) has completed the much-anticipated merger of its associated company, Vistara, with India’s national carrier, Air India. The merger is touted to represent a shift in the South Asian aviation market, combining Vistara’s resources and routes with Air India’s to create a more formidable airline in the region.
As a result of the merger, SIA now holds a 25.1% equity stake in the expanded Air India, which will incorporate Vistara’s existing operations. Consequently, Vistara will no longer be classified as an associated company of SIA, a designation that Air India will assume moving forward.
To bolster its position in the newly merged airline, SIA has confirmed an upcoming capital injection into Air India, amounting to $498 million (INR 31,945 million). This capital boost will help support Air India’s expanded operations following the merger with Vistara and aligns with SIA’s commitment to enhancing its footprint in India’s growing aviation market.
The additional capital injection will not alter SIA’s stake, which remains at 25.1%, and SIA has set November 21, 2024, as the expected date for issuing additional shares in the expanded airline. SIA has also confirmed that it will utilize its internal cash reserves to fund this capital injection.
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