Air India CEO Campbell Wilson on Friday, July 7, responded to recent reports regarding the proposed merger between Air India and Vistara, clarifying that the proposed merger remains on track, despite concerns raised by the Competition Commission of India (CCI).
In a message to employees, Wilson acknowledged that the CCI had requested more information about the merger proposal. He assured them that this was a normal and important part of the evaluation process and welcomed the request.
"You may have recently read that the
Competition Commission of India has asked for more information regarding our proposal to merge with Vistara. We welcome this request, this is a normal and important part of the evaluation process," Campbell said.
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.
