Competition Commission of India (CCI) on Friday approved the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India is subject to the compliance of voluntary commitments offered by the parties.

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

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

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

In November last year, Tata Group announced the merger of Tata SIA Airlines 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 CCI in April this year.

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

The deal will make Air India the country's largest international carrier and second-largest domestic carrier.

(With inputs from PTI)