Singapore's Competition Regulator Approves Air India-Vistara Merger with Conditions

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Singapore's competition regulator, the Competition and Consumer Commission of Singapore (CCCS), has granted conditional approval to the proposed merger between Air India and Vistara. The latter, a joint venture between Tata (holding a 51% stake) and Singapore Airlines (holding a 49% stake), is set to merge with Air India, pending the completion expected in 2025.

Stakeholding And Regulatory Approvals

As part of the merger, Singapore Airlines will hold a 25.1% stake in the merged entity, Air India. This move follows the approval of the merger by the Competition Commission of India (CCI) in September, with the CCCS's approval being among the final competition-related hurdles for the merger.
The CCCS identified specific competition concerns related to the majority market share held by Singapore Airlines, Air India, and Vistara on four direct flight routes between Singapore and India – namely, Delhi, Mumbai, Chennai, and Tiruchirapalli. However, the approval from the CCCS comes with conditions to address these concerns.
To mitigate the competition concerns, the airlines have provided capacity-related commitments to the CCCS. These commitments were deemed sufficient by the watchdog to address the identified issues. Both Air India and Vistara, in collaboration with Singapore Airlines and Tata, have submitted proposals to the CCCS outlining measures to avoid competition issues.
The approval granted by the CCCS is contingent upon the fulfillment of these commitments. With the proposed measures in place, the CCCS has deemed the merger suitable for approval, ensuring that it does not lead to anti-competitive practices or monopolistic behaviors in the relevant market segments.
The conditional approval from the CCCS marks a significant step forward in the merger process between Air India and Vistara.