Vistara’s CEO Vinod Kannan assures timely response to CCI queries by the end of the month
Vistara’s CEO Vinod Kannan announced on Monday that the airline plans to submit its response to the Competition Commission’s inquiries regarding the proposed merger with Air India by the end of this month. Kannan expressed confidence in obtaining all necessary regulatory approvals by early next year. The Competition Commission of India (CCI) has requested additional information regarding the merger between Vistara and Air India, a deal that was initially announced in November of last year.
“We have received specific questions from the CCI. By the end of this month, we will provide our response to address those concerns. Subsequently, the CCI will determine whether to proceed to phase two or if further clarification is required,” Kannan explained.
According to CCI regulations, if there are any anti-competitive issues, a thorough examination, often referred to as phase two of the approval process, may be conducted.
Kannan stated that Vistara anticipates obtaining all the necessary regulatory approvals by the beginning of the upcoming fiscal year. He assured that the merger process with Air India is also progressing as planned.
The airline has also submitted an application seeking approval for the merger to the National Company Law Tribunal (NCLT).
“We are optimistic about receiving a response and obtaining approval by the end of this year… We hope and expect that the necessary approvals will grant by March or April of next year. The final step will be the closure of the Air Operator’s Certificate (AOC),” Kannan explained.
Following the merger, the Vistara brand will no longer be operational.
Kannan emphasized that the airline remains committed to its growth plans without any interruptions or pauses. A clear demonstration of this commitment is the recent commencement of the Mumbai-London flight. Furthermore, by March 2024, the airline intends to augment its fleet with an additional 10 planes, including three B-787s.
Kannan highlighted that the current fleet size stands at 60 aircraft and these new planes will enable the expansion of operations to Europe. He further mentioned that the airline achieved an operating profit in the December quarter of FY23. It has continued to perform well in the June quarter of the current fiscal year. As a result, there is no need for any additional capital infusion at this time.
In November 2022, Tata Group announced a merger agreement between Vistara and Air India. Under this arrangement, Singapore Airlines will also acquire a 25.1 percent stake in Air India.
The merger will position Air India as the largest international carrier and the second-largest domestic airline in the country.
Vistara, a collaborative effort between Tata Group and Singapore Airlines, has a majority stake of 51 percent held by Tata Group, with Singapore Airlines owning the remaining share.
Furthermore, the parties involved, including TSPL, Air India, TSAL, and Singapore Airlines, sought approval for the merger from the CCI in April of this year. The entities involved in the merger are Tata Sons Pvt Ltd (TSPL), Air India Ltd, Tata SIA Airlines Ltd (TSAL), and Singapore Airlines Ltd.
Deals that exceed a specific threshold must obtain clearance from the CCI, which also ensures fair competition and monitors anti-competitive business practices.
Campbell Wilson, the CEO and MD of Air India, welcomed the CCI’s request for additional information on the merger on July 7. He emphasized that this is a standard and crucial part of the evaluation process.
Also, Read: Indian Aviation News
Private & Non-scheduled Charter operators in India
Go through, the Mall of Aviation
For the best HELIPAD CONSULTANCY
Bombay HC Upholds Naresh Goyal and Wife quashes ED’s ECIR
One more time
TAAI Considers NCLT Action if Go First’s Debt Remains Unresolved
About Author
