Singapore Airlines on Tuesday announced that plans to merge Air India and Vistara are underway and are awaiting foreign direct investment and other regulatory approvals.
Vistara is a joint venture between Singapore Airlines and the Tata Group. The merger of Vistara and Air India was announced in November 2022, with an agreement in which Singapore Airlines will acquire a 25.1% stake in Air India.
Singapore Airlines said in announcing its December quarter results that the merger will increase its presence in India, strengthen its multi-hub strategy and allow it to continue to directly participate in this large and fast-growing aviation market. Ta.
“Air India and Vistara merger plans are underway and are awaiting foreign direct investment and other regulatory approvals. Once this is completed, SIA (Singapore Airlines) will be a major carrier in all major airline markets in India. 25.1% stake in the enlarged Air India Group, which has a significant presence in India,” the release said.
Vistara CEO Vinod Kannan said in January that the merger was expected to be completed by mid-2025 and that he expected all legal approvals for the transaction to be completed by mid-year. .
SIA Group reported operating profit of S$609 million for the three months to December 2023, down 19.3% year-on-year.
Group net profit increased by 4.9% to S$659 million. This is primarily due to a variety of factors, including lower tax expenses, the ratio of profits to losses of associated companies in the previous year, and surpluses from aircraft, spare parts and aircraft scrapping. And a spare engine.
In the latest December quarter, revenue rose to a record S$5.082 billion, surpassing the $5 billion mark for the first time in the group’s history.
Singapore Airlines said demand for air travel remained healthy in the final quarter of 2023/24 and the first quarter of 2024/25.
“Nonetheless, passenger yields remain under pressure from increased competition as capacity continues to recover across the industry. Rising geopolitical tensions and economic uncertainty also weigh on business confidence and This could weigh on aviation demand.
“Rising fuel prices, inflationary pressures and supply chain constraints are also creating a more challenging operating cost environment for airlines around the world,” the release said.
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