Indian conglomerate Tata Group has asked the competition regulator to approve a merger between its airline Air India and Vistara, the company’s joint venture with Singapore Airlines (SIA).
The merger, announced in November, will create a stronger rival to India’s dominant carrier IndiGo and help SIA consolidate its position in one of the world’s fastest-growing aviation markets.
Tata will hold 51% of the total issued and paid-up share capital of the merged entity, while SIA will hold a 25.1% minority stake, according to a filing on the Competition Commission of India’s website on Wednesday.
Founded by JRD Tata in 1932 and nationalized in 1953, Air India was brought back under the control of the Tatas in January last year. Once known for its ornate aircraft and stellar service, Air India’s reputation declined in the mid-2000s with mounting financial problems.
Tata Group chairman N Chandrasekaran said in November that the merger was an important milestone in efforts to rebuild Air India into a “world-class airline”.
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