The Competition Commission on Friday approved the proposed merger of Air India and Vistara subject to certain conditions.

The development is a major step forward for the Tata group in consolidating its aviation business.

In a post on platform X, the Competition Commission of India (CCI) on Friday said it has approved the merger.

“The CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties,” it said.

Vistara and Air India are full-service carriers that are part of the Tata group, and Singapore Airlines holds a 49 per cent stake in Vistara.

In November last year, the Tata group announced the merger of Vistara with Air India under a deal wherein Singapore Airlines will also acquire a 25.1 per cent stake in Air India. The deal would mark a major consolidation in India’s fast-growing aviation space.

The approval for the proposed combination was sought from the CCI in April this year. The CCI in June asked for more details with respect to the proposed merger.

The parties to the combination are Tata Sons Pvt Ltd (TSPL), Air India Ltd, Tata SIA Airlines Ltd (TSAL) and Singapore Airlines Ltd.

Once the merger concludes, Singapore Airlines will be allotted additional shares in the merged entity through a preferential allotment. The deal will make Air India the country’s largest international carrier and second-largest domestic carrier.

Air India Express and AIX Connect (earlier known as AirAsia India) are in the process of being merged..

AI pilots

Air India group airlines have recruited and onboarded as many as 650 pilots since April this year, according to Air India CEO Campbell Wilson.

Besides, Air India’s widebody Boeing 777 fleet will have two more B777s by the first week of this month, with one of them already added to the fleet, which will help the airline enhance services to the US and upgauge capacity, he said.

The Air India group comprises full service Air India and its two wholly-owned subsidiaries — Air India Express and AIX Connect (erstwhile AirAsia India).

Last year, Air India announced its plans to induct on lease 11 B777s — six B777-300ER and five B777-200-LR, primarily to operate its flights on North American routes. He also said that two of the three long-grounded Boeing 787s have also returned to service.

Meanwhile, the DGCA has temporarily suspended all training at Air India’s Mumbai and Hyderabad facilities after it found certain “lapses” during a spot check.

The Mumbai facility imparts training to Boeing fleet pilots and the Hyderabad facility is used for training of operating the narrowbody Airbus A320 family fleet.