Air India Vistara Airline Merger National Company Law Tribunal (NCLT) approved the merger of Air India and Vistara. This approval paved the way for the formation of one of the world’s largest airline groups.
Vistara is a joint venture of Singapore Airlines and Tata Group. In the year 2022, the airlines announced the merger. The National Company Law Tribunal ( NCLT ) has approved the merger of Air India and Vistara (Air India-Vistara Merger). This approval has paved the way for the creation of one of the world’s largest airline groups.
The merger was announced in the year 2022. After this announcement, Singapore Airlines will have a 25.1 percent stake in Air India. Vistara is a joint venture of Singapore Airlines and Tata Group.
NCLT issued order copy
The order copy is 31 pages long. According to this order copy, the Chandigarh bench of NCLT approved the “Composite Scheme of Arrangement” involving Talace, Air India and Vistara. Let us tell you that all are part of the Tata Group. Air India hopes that the merger will be completed by the end of this year.
Also Read: RBI MPC Meet Live Updates: RBI maintains status quo, keeps interest rates unchanged at 6.5%
The Chandigarh bench of NCLT observed that the scheme has already received the necessary approvals from the shareholders and creditors of both the airlines. Apart from this, it has also received applicable approvals including fair trade regulator Competition Commission of India (CCI) and Directorate General of Civil Aviation (DGCA). Apart from this, the Income Tax Department also did not raise any permanent objection.
According to the NCLT order book, the ‘comprehensive scheme of arrangement’ between the petitioner companies and their respective shareholders under sections 230 to 232 and other applicable provisions of the Companies Act, 2013 is approved. It said the approved scheme shall be binding on the petitioner companies and their respective shareholders.
The order also said that the companies shall ensure foreign direct investment (FDI) approval by Singapore Airlines (a shareholder of Vistara) and necessary security clearance under the relevant CARs from the DGCA within a time frame of nine months from the date of this order.
In March this year, Singapore’s competition regulator CCCS gave conditional approval to the proposed merger. The deal got approval from CCI in September 2023, subject to certain conditions. Tata Group took over the loss-making Air India in January
