Competition and Consumer Commission of Singapore (CCCS) said both the airlines have given commitment to maintain capacity as of 2019 on both sides of Singapore to Delhi, Mumbai, Chennai and Trichy routes.
The move takes the consolidation efforts of Tata group’s airline business one step forward.
Tata Sons and Singapore Airlines (SIA) will merge Vistara with Air India to create India’s second-biggest carrier. SIA will hold a 25.1% stake in the entity with an equity infusion of Rs 2,058.50 crore. Tata will hold the rest.
The deal is part of Tata Sons effort to simplify the conglomerate’s businesses and make them more efficient.
“After evaluating the feedback provided, CCCS considers the proposed commitments sufficient to address the competition concerns arising from the merger and hence approves it, ” the commission says in a statement. The CCCS said that it had conducted a market testing exercise on whether the proposed commitments would sufficiently address the competition concerns arising from the merger.Most stakeholders did not raise any concerns except one.
CCCS in its preliminary review had raised concerns over Tata group’s acquisition of Air India as it could limit competition on the India-Singapore air routes.
It had sought certain commitments from the Tata group to address the competition concerns.
In September last year, the Competition Commission of India (CCI) had given its nod for Vistara’s merger with Air India after similar commitments from the two airlines to adhere to their existing capacity on certain routes.
The two airlines are also in the process of taking approval from regulators of other countries where both operate.
The Tata group expects to receive regulatory clearances, which include those from the National Company Law Tribunal, Ministry of Civil Aviation and Department for Promotion of Industry and Internal Trade by mid-2024, post which they will be able to start commercial integration like having network synergies.
Vistara CEO Vinod Kannan had earlier told ET that the Tata group is aiming to complete the merger by 2025.
A total merger of operations will take time as merging networks and operations is more complex, Kannan had explained.
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