The Tata-owned airline, Vistara has added Air India as a bilateral interline partner. With this, passengers will be able to travel seamlessly using a single ticket on both airlines, the company announced today.

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The Tata Group announced the consolidation of its airlines, Vistara and Air India, in November 2022. Vistara is a 51:49 Joint Venture between Tata Sons and Singapore Airlines Limited (“SIA”). Even after the announcement of the merger, till now two airlines have been operating independently and passengers needed to book tickets separately.

However, since now they have become the interline partner, the airlines will handle check-in and baggage for each other's passengers. Also, bags may be transferred from one airline to another on mixed itineraries.

Vistara shall be merged with Air India post receipt of requisite approvals. As part of the merger transaction, SIA shall also invest Rs 2,059 crore in Air India. Post the consolidation, SIA shall hold 25.1 per cent shareholding in Air India. The transaction is estimated to be completed by March 2024."Tata Group approached the Competition Commission of India (CCI) last week for approval to merge Air India and Vistara. In the transaction note, Tata Sons said, "The proposed combination relates to the merger of Tata SIA Airlines Limited (TSAL) into Air India Limited (AIL), Air India being the surviving entity."

Employee integration and other processes for the mergers have already been underway. The CCI’s nod is one of many things that need to be completed for the eventual merger of Air India and Vistara.

“The proposed combination relates to the merger of TSAL (Vistara) into Air India Ltd (AIL), with Air India being the surviving entity and the acquisition of shares in the merged entity by SIA and TSPL. Acquisition of additional shares in the merged entity by SIA pursuant to a preferential allotment,” a notice filed with CCI read, as per PTI.

 

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