CCI notice on Air India-Vistara merger normal part of evaluation, assures CEO Campbell Wilson

Wilson emphasised that the integration of their low-cost carriers (LCC) was progressing well and outlined that the company is "planning for an eventual end state where the Air India group has a single, much large full-service carriers and a single low cost airline, with aligned practices, optimised systems and career prospects across the combined entity."

The CCI's action followed media reports on June 27, stating that the fair trade watchdog had issued a show cause notice to Tata Group and Air India. The CCI is investigating the potential impact of the merger on competition within the aviation market. Both Air India and Vistara are subsidiaries of the Tata Group, with Singapore Airlines holding a 49 percent stake in Vistara.

The proposed merger, announced by the Tata Group in November of the previous year, aims to integrate Vistara with Air India, while Singapore Airlines would acquire a 25.1 percent stake in Air India. If approved, the deal would lead to a significant consolidation within India's growing aviation sector.

However, the regulatory body will carefully evaluate the merger proposal to determine whether it could harm competition within the marketplace.