India has approved Singapore Airlines’ ₹2,058.5-crore foreign direct investment (FDI) in Air India Group as part of Vistara’s merger with Air India.

The merger is expected to be completed by the end of 2024. However, Air India will operate the flights of Vistara from November 12.

Singapore Airlines, which owns 49 per cent of Vistara in a joint venture with India’s Tata Group, will hold 25.01 per cent in an expanded Air India. The Tatas will hold the rest.

From September 3, it will not be possible to book a ticket with Vistara for travel on or after November 12, Vistara said in a statement.

Vistara’s aircraft will be operated by Air India from November 12, and bookings for these routes will be redirected to Air India’s website. Vistara will continue normal operations until November 11, 2024.

In an FAQ, Vistara said fliers who have already booked a ticket on their flights on or after November 12 will receive an Air India ticket with a new e-ticket number. The PNR will remain the same as before. On the day of the journey, passengers may proceed to the Air India counter at the airport.

SIA is due to invest up to $599 million (around ₹5,000 crore) after the merger is completed, it said on Friday.

Air India CEO Campbell Wilson informed employees that November 12 has been designated for the transition of Vistara’s aircraft and crew to Air India.

Vistara, which has been operating at a loss, has a fleet of 70 aircraft serving 50 destinations. The airline held a 10 per cent market share in India’s domestic market as of July.

The government’s approval of SIA’s FDI marks the last significant clearance for the merger, which was announced in November 2022. The merger received approval from the National Company Law Tribunal (NCLT) in June.

Earlier, in March, Singapore’s competition regulator CCCS gave conditional approval to the deal.

The Competition Commission of India had also approved the merger in September 2023, with certain conditions.

Wilson noted that from November 12, Vistara’s flight numbers will be replaced by Air India’s, although the aircraft, schedule, and operating crew will remain largely unchanged until early 2025.

Air India and Vistara, which launched operations in January 2015, collectively employ over 23,000 people.

In July, sources indicated that around 600 non-flying staff from both airlines might be affected by the merger, with efforts underway to find alternative positions within the Air India Group or other Tata companies.

Vinod Kannan, CEO of Vistara, stated that the merger aims to provide passengers with more choices through a larger fleet and an expanded network, ultimately enhancing the overall travel experience.