NCLT approves Vistara-Air India merger

The National Company Law Tribunal NCLT has approved the muchanticipated merger between Vistara and Air India This merger which has been in the works for several months will result in the cessation of the Vistara brand as it fully integrates into Air Indiarsquos operations With the approval from NCLT the two airlines will now officially commence the process of merger which is likely to take over several monthsNCLT orderThe 31 pages NCLT order of the merger petition whose copy is with midday stated ldquoThere is no objection of RDROC to the scheme merger scheme under considerationrdquo The order continued ldquoThe official Liquidator OL also filed its report and did not raise any objection towards the approval of the schemerdquoThe order also clarified ldquoSince there is clear no objection of income tax department against the petitioner company as there is neither any demand outstanding nor any assessmentpenalty proceeding pending against them and the learned senior standing counsel appearing for the Income Tax Department unequivocally stated that the department has no objection to the scheme the motion petition is allowed accordinglyrdquoThe new shareholding pattern will be as follows 7338 per cent will be held by Tata Sons Private Limited 251 per cent will be held by Singapore Airlines and 152 per cent will be held by SBICAP Trustee Company Limited on behalf of Air India Employee Settlement TrustAirline staffers speakFor the staff of both airlines the merger brings a mix of emotions and expectations Vistara employees while proud of their airlinersquos accomplishments are hopeful that the merger will provide greater career opportunities and a more robust network ldquoVistara has always been a family and itrsquos sad to see the brand go However wersquore excited about the new possibilities and being part of Air Indiarsquos revivalrdquo said a Vistara cabin crew memberOn the Air India side employees view the merger as a positive step towards modernising and enhancing the airlinersquos services ldquoIntegrating Vistararsquos best practices and service standards will be beneficial We are looking forward to working with our new colleagues and creating a more competitive airlinerdquo commented an Air India pilotA senior Air India staffer told midday ldquoThe merger marks a significant shift in Indiarsquos aviation landscape combining the strengths of both airlines under the Air India umbrella Vistara a joint venture between Tata Sons and Singapore Airlines has built a reputation for premium service and operational excellence Air India under the Tata Grouprsquos leadership is in the midst of a transformation aimed at restoring its former gloryrdquoldquoThe merger will also mean significant operational and cultural integration efforts Both airlines will need to harmonise their systems procedures and corporate cultures Management from both sides has assured employees that they will be supported throughout the transition with efforts to retain the best of both worldsrdquo said a Vistara staffer