The National Company Law Tribunal (NCLT) approved the merger of Air India and Vistara on Thursday (6 June, 2024), forming a global airline powerhouse.
The merger, disclosed in November 2022, will give Singapore Airlines a 25.1% share in Air India, with Vistara being a collaboration between Singapore Airlines and Tata Group.
In a 31-page decision, the Chandigarh bench of the NCLT approved the “composite scheme of arrangement” involving Talace, Air India, and Vistara, all subsidiaries of the Tata Group.
Air India expects to finalize the merger by year-end.
A two-member panel of the Chandigarh bench of NCLT mentioned that the scheme has garnered necessary nods from the shareholders and creditors of both airlines.
“Accordingly, a sanction is hereby granted to the ‘Composite Scheme of Arrangement’ amongst the petitioner companies and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013,” the NCLT order said.
The approved plan will be obligatory for the companies involved and their individual shareholders.
It further said, “The Transferor Companies (Vistara) shall stand dissolved without undergoing the process of winding up on completion of the merger and associated formalities after receipt of necessary approvals including FDI approval/security clearances as required under relevant CARs (Civil Aviation Regulations) issued by DGCA/MCA/any other authority within a period of nine months from the date of this order.”
Also Read: After Vistara, Air India Express Flights Hit By Disruptions. Airline Offers Full Refund
The order also included that the companies must secure Foreign Direct Investment (FDI) approval from Singapore Airlines, a shareholder of Vistara, and necessary security clearances within nine months from the order date as per DGCA/MOCA regulations.
This year in March, Singapore’s CCCS conditionally approved the merger. In September 2023, the CCI also approved it with certain conditions.
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