Airlines

SIA to Invest ₹3,195 Crore in Air India Following Vistara Merger

In a significant move to bolster its presence in India’s aviation market, Singapore Airlines (SIA) announced an additional investment of ₹3,194.5 crore in Air India following the merger with Vistara, scheduled to be completed by November 2024.

Before the merger, SIA and Tata held a 49% and 51% stake, respectively, in Vistara, while Air India was fully owned by Tata Group.

This merger will unite Air India and Vistara, creating a strong player in the Indian aviation industry with a significant share across domestic, international, full-service, and low-cost travel segments. With the completion of the merger, Singapore Airlines will maintain its 25.1% stake in Air India.

The ₹3,194.5 crore investment will be made through the subscription of new shares in Air India, and will cover Tata’s previous funding contributions to the airline.

This capital infusion is part of SIA’s commitment to the success of the newly merged entity and is expected to strengthen its multi-hub strategy, reinforcing its footprint in India’s fast-growing aviation market.

In addition to the financial support, SIA and Air India recently expanded their codeshare agreement, which will add 11 Indian cities and 40 international destinations to their shared network.

The collaboration marks a new chapter in the evolution of both airlines, enabling them to better compete in the dynamic Indian market.

SIA’s additional capital will enable Air India to continue its growth trajectory and further enhance its competitiveness in the global airline industry. The continued investment will be evaluated based on the airline’s future needs and funding options.

As the merged entity takes shape, it is poised to provide enhanced connectivity for travelers, while positioning Air India as a more formidable competitor on the international stage.

Airlines

PIA Reinstates Manchester and Paris Routes After EU Ban Lift

Pakistan International Airlines (PIA) has announced plans to resume flights to Europe starting in January, beginning with Paris as its first destination.

The decision follows the European Union Aviation Safety Agency’s (EASA) removal of a long-standing ban on the airline. PIA’s inaugural flight to Paris is scheduled for January 10, with bookings opening on December 9.

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In an official statement, PIA spokesperson Abdullah Hafeez Khan confirmed that the first flight schedule has been approved, marking a significant milestone in the airline’s recovery efforts. The EU ban had previously cost PIA approximately Rs40 billion ($144 million) annually in lost revenue, compounding its financial struggles.

With European operations restarting, PIA is now setting its sights on the United Kingdom. The airline plans to seek approval from the UK Department for Transport (DfT) to resume flights to major British cities such as London, Manchester, and Birmingham.

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These routes are anticipated to see high demand once necessary clearances are obtained. The lifting of the EU ban represents a key achievement for PIA as it works to rebuild its international network and regain its standing in the global aviation market.

By restoring flights to Europe and aiming for UK destinations, PIA is taking critical steps toward recovering lost ground and improving its financial outlook.