CCCS grants conditional approval for Air India, SIA, and Vistara transactions

The parties have proposed commitments specific to each transaction to address competition concerns.

The Competition and Consumer Commission of Singapore (CCCS) has granted conditional approval for three transactions involving Air India, Singapore Airlines (SIA), and Vistara. 

The approved transactions include Talace Private Limited's acquisition of Air India's shares and voting rights from the Government of India and the purchase of Air India's 100% stakes in Air India Express Limited and 50% stake in Air India SATS Airport Services Private Limited.

The commission has also approved SIA's acquisition of 25.1% of the enlarged equity capital of Air India.

The proposed commercial cooperation between SIA and the combined entity of Talace, Vistara, and Air India, as outlined in the agreement dated 29 November 2022, has also received conditional approval.

To address competition concerns, CCCS said the parties have proposed commitments specific to each transaction, such as maintaining pre-COVID-19 capacity levels on designated routes, appointing an independent auditor for compliance monitoring, and submitting regular reports to the watchdog.

“Even though a number of competing airlines provide air passenger transport services on these routes, the Parties have sustained substantial market share in recent years,” the watchdog said in a statement. 

“CCCS also found that the price and capacity coordination between the parties arising from the confluence of the Transactions would significantly restrict competition on the affected routes,” it added.

Ongoing monitoring and reporting obligations will be in place to uphold compliance with the approved conditions.