DELHI- As part of their commitments to address potential competition concerns arising from the Vistara (UK) merger, Air India (AI) and Singapore Airlines (SQ) will ensure minimum capacity levels on various domestic and international routes. These routes include Delhi-Sydney and Delhi-Paris, among others.
The Competition Commission of India (CCI) approved the merger of Vistara with Air India on September 1, in which Singapore Airlines will also acquire a 25.1% stake in Air India. To address competition concerns raised by the CCI, both airlines have agreed to specific commitments related to the merger.
Air India Singapore Airlines Minimize Routes
One of these commitments from Air India is to voluntarily maintain a “minimum capacity/supply level” on specific overlapping Origin and destination (O&D) routes, both domestically and internationally.
Air India and Singapore Airlines have committed to ensuring minimum capacity levels on several domestic and international routes as part of their agreements to address competition concerns raised by the Competition Commission of India (CCI). These routes include:
Air India and Vistara also operate flights on these domestic and international routes. The commitment also extends to maintaining minimum capacity levels on certain overlapping Origin & Destination (O&D) pairs between India and Singapore, including Delhi-Singapore, Mumbai-Singapore, Tiruchirappalli-Singapore, and Chennai-Singapore.
The Competition Commission of India (CCI) has acknowledged that the voluntary capacity commitments offered by Air India and Singapore Airlines effectively address potential competition concerns arising from the proposed merger with Vistara. The CCI’s September 1 order reflects its decision not to investigate the matter further.
This merger signifies a significant consolidation in India’s rapidly expanding aviation industry. Following the merger’s completion, Singapore Airlines will receive additional shares in the merged entity via a preferential allotment. This transaction will position Air India as the country’s largest international carrier and the second-largest domestic carrier.
Air India Express and AIX Connect (formerly AirAsia India) are also undergoing a merger process. The Tata Group, with its four airlines – Air India, Air India Express, AIX Connect, and Vistara (where Singapore Airlines holds a 49% stake) – continues to play a prominent role in India’s aviation landscape.
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