India’s antitrust body has approved the merger of Tata SIA Airlines – operating as Vistara – with Air India, the regulator said on Friday (Sep 1) in a post on social media platform X, while allowing Singapore Airlines to also acquire shares in the newly formed entity.

The Competition Commission of India (CCI) had been scrutinising the deal, announced last November, and had flagged concerns that the merged entity could have a monopoly in the domestic market.

The CCI said its initial review showed the market share of the Tata Group could be more than 50 per cent in at least seven domestic markets, raising competition concerns, sources told Reuters last month.

Air India did not immediately respond to a Reuters request for comment.

Air India’s merger with Vistara, a joint venture between Tata and Singapore Airlines, will pose a challenge to local rival and market leader IndiGo. REUTERS