The National Company Law Tribunal (NCLT) approved the merger of Air India and Vistara. The merger has resulted in the creation of one of the world’s largest airline conglomerates. Under the merger deal, Singapore Airlines will own 25.1% stake in Air India. Vistara is a joint venture between Tata Group and Singapore Airlines.
Air India is planning to finalize the merger by the end of this year. The merger was announced in November 2022. In a detailed order, the Chandigarh branch of the NCLT has approved for composite scheme of arrangement which will bring Air India, Vistara, and Talace all under the Tata Group umbrella.
The NCLT in its order mentioned, “a sanction is hereby permitted to the ‘Composite Scheme of Arrangement’ between the petitioner companies and their shareholders under Sections 230 to 232 and Companies Act, 2013 provisions. The order asserted that the approved scheme would be binding on the companies and their shareholders.
The two key regulatory bodies, the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA) have given clearance for the merger scheme. The two-member bench highlighted that all the necessary approvals from the creditors and shareholders of both companies have been secured.
