Singapore Airlines to Invest Rs 3194.5 Crore in Air India

Singapore Airlines (SIA) will invest an additional Rs 3,194.5 crore in Air India following its merger with Vistara, set to be completed on November 11, 2024. The merger, announced on November 29, 2022, will give SIA a 25.1% stake in the expanded Air India and includes the exchange of SIA's 49% interest in Vistara along with Rs 2,058.5 crore in cash. Post-merger, SIA expects a non-cash accounting gain of around 1.1 billion Singapore dollars and will begin equity accounting for its share of Air India's financial performance. SIA will also cover Tata's prior funding contributions up to Rs 5,020 crore to maintain its stake. Future capital injections will depend on Air India's financial needs. This merger marks a significant consolidation in India's rapidly growing aviation market.