Air India-Vistara merger gets Singapore's conditional approval
Reuters | Mar 5, 2024, 04.36 PM IST
Air India-Vistara merger gets Singapore's conditional approval
Singapore's competition watchdog said on Tuesday it has approved the merger between Tata Group-owned Air India and sister airline Vistara, a joint venture between Tata and Singapore Airlines, subject to certain conditions.
Singapore's flagship carrier announced its plan to merge Vistara and Air India in November 2022, in a bid to create a dominant full-service airline in the domestic and international markets.
While India's antitrust body approved the deal in September last year, the Competition and Consumer Commission of Singapore (CCCS) had identified certain competition concerns regarding the merger.
The watchdog said the parties possessed the majority of the market share among airlines operating direct flights on four routes of concern - between Singapore and Indian cities of New Delhi, Mumbai, Chennai and Tiruchirapalli.
To address the concerns raised by the watchdog, the parties have proposed to maintain capacity on the said flights at pre-COVID levels, appoint independent auditors to monitor compliance with capacity commitments and submit annual as well as interim reports.
"CCCS considers the proposed commitments sufficient to address the competition concerns arising from the transactions," the watchdog said on Tuesday.
Singapore Airlines and Air India did not immediately respond to a Reuters request for comment.
According to the terms of the deal, autos-to-steel conglomerate Tata would hold 74.9% of the combined entity, while Singapore Airlines will own the remaining 25.1%.
AI-Vistara merger gets approval from Singapore panel
TNN | Mar 6, 2024, 06.01 AM IST
NEW DELHI: The Competition and Consumer Commission of Singapore (CCCS) has granted conditional approval for merging Vistara - which is owned 49% by Singapore Airlines (SIA) - into Air India. SIA will hold 25.1% stake in the merged AI, with Tatas having the remaining stake.
The CCCS "identified some competition concerns" in this transaction, especially as these airlines have a significant number of flights between Delhi, Mumbai, Chennai and Tiruchirapalli on the Indian side and Singapore on the other.
"Even though a number of competing airlines provide air passenger transport services on these routes, the parties have sustained substantial market share in recent years. CCCS also found that the price and capacity coordination between the parties arising from the confluence of the transactions would significantly restrict competition on the affected routes," the regulator said in a statement.
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