India’s antitrust body approves Vistara’s merger with Air India

BENGALURU/NEW DELHI (Reuters) – India’s antitrust authority on Friday approved the merger of Tata group-owned Air India with sister airline Vistara, subject to compliance with voluntary commitments made by the airlines.

The approval comes amid growing concerns within the industry about a duopoly, with merged Air India-Vistara and IndiGo controlling more than 75% of the domestic market, while smaller rivals such as SpiceJet (SPJT.NS) and fight to go first.

Tata said in November that it was merging its two full-service airlines, Air India and Vistara, a joint venture between Tata and Singapore Airlines. (SIAL.SI)to create a larger airline to take on local rivals like IndiGo (ENGL.NS) and Middle Eastern carriers that dominate outbound traffic from India.

The Competition Commission of India (CCI) had noted that on some routes and categories, such as business class travel, the merged entity may have a monopoly, raising competition concerns, sources told Reuters earlier.

Reuters reported last month that Air India chief executive Campbell Wilson had held talks with India’s antitrust chief about the merger, weeks after the watchdog raised concerns about possible market dominance.

The regulator approved the proposed deal on Friday, “subject to compliance with voluntary commitments offered by the parties,” but did not elaborate on the voluntary commitments made by the airlines.

the group daddy last month unveiled a new logo, branding and aircraft livery for Air India as part of a multi-billion dollar transformation of the former state airline.

Air India and Vistara, which will be renamed Air India, did not immediately respond to a Reuters request for comment.

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