NCLT approves Vistara-Air India merger

Representation Pic

The National Company Law Tribunal (NCLT) has approved the much-anticipated merger between Vistara and Air India. This merger, which has been in the works for several months, will result in the cessation of the Vistara brand as it fully integrates into Air India's operations. With the approval from NCLT, the two airlines will now officially commence the process of merger which is likely to take over several months.

NCLT order

The 31 pages NCLT order of the merger petition, whose copy is with mid-day stated, "There is no objection of RD/ROC to the scheme (merger scheme) under consideration." The order continued, "The official Liquidator (OL) also filed its report and did not raise any objection towards the approval of the scheme."

The order also clarified, "Since there is clear no objection of income tax department against the petitioner company as there is neither any demand outstanding nor any assessment/penalty proceeding pending against them and the learned senior standing counsel appearing for the Income Tax Department unequivocally stated that the department has no objection to the scheme, the motion petition, is allowed, accordingly"

The new shareholding pattern will be as follows: 73.38 per cent will be held by Tata Sons Private Limited, 25.1 per cent will be held by Singapore Airlines and 1.52 per cent will be held by SBICAP Trustee Company Limited (on behalf of Air India Employee Settlement Trust)

Airline staffers speak

For the staff of both airlines, the merger brings a mix of emotions and expectations. Vistara employees, while proud of their airline's accomplishments, are hopeful that the merger will provide greater career opportunities and a more robust network. "Vistara has always been a family, and it's sad to see the brand go. However, we're excited about the new possibilities and being part of Air India's revival," said a Vistara cabin crew member.

On the Air India side, employees view the merger as a positive step towards modernising and enhancing the airline's services. "Integrating Vistara's best practices and service standards will be beneficial. We are looking forward to working with our new colleagues and creating a more competitive airline," commented an Air India pilot.

A senior Air India staffer told mid-day, "The merger marks a significant shift in India's aviation landscape, combining the strengths of both airlines under the Air India umbrella. Vistara, a joint venture between Tata Sons and Singapore Airlines, has built a reputation for premium service and operational excellence. Air India, under the Tata Group's leadership, is in the midst of a transformation aimed at restoring its former glory."

"The merger will also mean significant operational and cultural integration efforts. Both airlines will need to harmonise their systems, procedures, and corporate cultures. Management from both sides has assured employees that they will be supported throughout the transition, with efforts to retain the best of both worlds." said a Vistara staffer.