Ever since Tata Group bought Air India, winds of change are visible within the airlines. Recently the new logo of Air India has also been launched. Now it is going to become India's second largest airline. The merger of Air India with Vistara has been approved. After this, the company will now work to give tough competition to Indigo. Know how…
The merger of Air India and Vistara has received approval from the Competition Commission of India (CCI). Tata Group and Singapore Airlines have stake in Vistara. After the merger, Singapore Airlines will get about 25 percent stake in Air India.
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Merger will be completed by March 2024
Tata Group had announced the merger of Air India and Vistara in November last year itself. Singapore Airlines will now invest Rs 2059 crore in the new Air India. Air India says that this merger will be completed by March 2024.
Tata Sons Chairman N. Chandrasekaran has described the approval of the merger as a big achievement. He said that this would be a milestone in making Air India a truly world-class airlines.
By the way, there is a neck-and-neck competition between the two companies at this time. Where Air India has recently ordered 470 aircraft. Indigo is also not lagging behind. He has also placed an order to buy 500 aircraft.
IndiGo will face tough competition
Indigo is currently the largest airline in the country. It has about 60 percent share in the domestic market. Whereas Air India has about 27 percent. In contrast, Air India's share in the international travel market from India is more than 23 percent, while IndiGo holds only 16 percent of the market.
After Air India and Vistara, where its interference in the domestic market will increase, it will be the country's largest airline providing service on international routes. This will directly affect the kingdom of Indigo.
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