AI-Vistara merger will get approval from Singapore panel

NEW DELHI: The Competitors and Client Fee of Singapore (CCCS) has granted conditional approval for merging Vistara – which is owned 49% by Singapore Airways (SIA) – into Air India. SIA will maintain 25.1% stake within the merged AI, with Tatas having the remaining stake.The CCCS “identified some competition concerns” on this transaction, particularly as these airways have a major variety of flights between Delhi, Mumbai, Chennai and Tiruchirapalli on the Indian facet and Singapore on the opposite. “Even though a number of competing airlines provide air passenger transport services on these routes, the parties have sustained substantial market share in recent years. CCCS also found that the price and capacity coordination between the parties arising from the confluence of the transactions would significantly restrict competition on the affected routes,” the regulator stated in a press release.

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