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Digital Desk: Vistara Airlines stated today that it will combine with Tata-owned Air India by March 2024. Singapore Airlines, which owns a minority stake in Vistara through its joint venture with Tata, would own approximately 25% of the enlarged Air India, into which it will invest more than 2,000 crore.

As Tata Sons rebuilds its empire's huge aviation wing, the restructuring will result in a larger fleet and additional routes under the Air India name. Tata now controls 51% of Vistara, with Singapore Airlines owning the remaining 49% in the joint venture

Since Tata purchased Air India for 18,000 crore as part of a government disinvestment roughly a year ago, the company's objective has been to consolidate all of its aviation brands under one name.

According to a Singapore Airlines release, the two owners of Vistara "hope to finalise the merger by March 2024, subject to regulatory approvals." Tata also controls the low-cost carriers Air India Express and AirAsia India, which will also be united under the Air India brand by 2024.

This brings the total fleet size to 218, including Air India's 113, AirAsia India's 28, Vistara's 53, and Air India Express's 24. Tata Sons stated that it will thereafter be India's largest international carrier and second largest local carrier.

According to reports, it is also planning to order 300 narrow-body jets, one of the largest orders in aviation history, to be delivered gradually. Air India's CEO stated that the company's 113-plane fleet will be tripled in the next five years.

This is a significant step toward the Tatas resurrecting Air India, a corporation formed by the family-run group but then nationalised, only to return to Tata Sons as losses mounted and the government thought it was best to sell it off.

"As part of the change, Air India is focusing on extending both its network and fleet, overhauling its customer proposition, enhancing safety, reliability, and on-time performance," Tata Sons chairperson N Chandrasekaran was quoted as saying in a press announcement.

Singapore Airlines' chief executive, Goh Choon Phong, stated, "Our collaboration in establishing Vistara in 2013 resulted in a market-leading full-service carrier that has received numerous global plaudits in a short period of time. With this combination, we will be able to strengthen our partnership with Tata and directly engage in an exciting new growth phase in India's aviation business."

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