Nclt approves Air India-Vistara merger – Amar Ujala Hindi News Live

NCLT approves Air India-Vistara merger

Vistara, Air India
– Photo: ANI

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The National Company Law Tribunal (NCLT) on Thursday approved the merger of Air India and Vistara, paving the way for it to become one of the world’s largest airline groups. After the merger, Singapore Airlines will have a 25.1 percent stake in Air India. Vistara is a joint venture of Singapore Airlines and Tata Group.

In a 31-page judgment, the Chandigarh bench of the NCLT approved the overall arrangement scheme involving Tales, Air India and Vistara. All are part of the Tata Group. Air India hopes that the merger will be completed by the end of this year. The two-member Chandigarh bench of the NCLT said that the scheme has already received the necessary approvals from the shareholders and creditors of both the airline companies.

“The Composite Scheme of Arrangement between the petitioner companies and their shareholders under Sections 230 to 232 and other provisions of the Companies Act, 2013 is approved,” the NCLT order said. It added that the scheme shall be binding on the companies and their respective shareholders.

The order also said that the companies will ensure foreign direct investment (FDI) approval from Singapore Airlines (Vistara’s shareholder) and the necessary security clearances under the relevant CARs (Civil Aviation Regulations) from DGCA/MOCA within a time frame of nine months from the date of this order. In March this year, Singapore’s competition regulator CCCS gave conditional approval to the proposed merger. In September 2023, the deal got approval from the CCI with certain conditions. The Tata Group took over the loss-making Air India in January 2022.

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