Singapore Airlines (SIA) will make an additional investment of Rs 3,194.5 crore in Tata Group-owned Air India following the merger of Vistara in November 2024. The merger, which was announced on November 29, 2022, and is expected to be finalised by November 11, 2024, will give Singapore Airlines a 25.1 percent stake in the expanded Air India. ‘

Vistara, the full-service carrier that began operations in January 2015, is a joint venture between Tata Group and Singapore Airlines, with SIA holding a 49 percent stake. Under the merger agreement, SIA’s contribution includes its 49 percent interest in Vistara along with Rs 2,058.5 crore (SGD 498 million) in cash for a 25.1 percent equity stake in the combined entity. 

Once the merger is completed, SIA expects to record a non-cash accounting gain of approximately SGD 1.1 billion and will start accounting for its share of Air India’s financial results.  

The merger also includes an agreement for SIA to contribute any funding provided by Tata Group to Air India before the merger is completed, along with associated funding costs up to Rs 5,020 crore, to maintain its 25.1 percent stake.