AIR INDIA AND VISTARA AIRLINES

MERGER REPORT

YEAR 2024-25

THE TATA GROUP

AIR INDIA VALUATION AT RS 56,000 CRORE AFTER SINGAPORE AIRLINES'

EQUITY INFUSION.

AIR INDIA IS VALUED AT ONE-THIRD THE VALUATION OF INTER GLOBE AVIATION

AFTER SINGAPORE AIRLINES INFUSED RS 3,194.5 CRORE TO ACQUIRE 25.1%
EQUITY.

The 'Maharaja', Air India Ltd., has merged Vistara Airlines with itself, completing the two-year tedious merger
process that saw merging three airlines to form the country's only full service and low-cost Airline. The completion
of the merger comes into effect with joint venture partner Singapore Airlines infusing Rs 3,194.5 crore into the
merged airline to acquire a 25.1% equity on a fully diluted.
AIR INDIA & VISTARA MERGER COMPLETED:
TATA-GROUP AIRLINE BECOMES INDIA’S LARGEST INTERNATIONAL CARRIER.

Air India-Vistara merger: The enlarged Air India will operate over 5,600 weekly flights, connecting more than 90
domestic and international destinations with a fleet of 210.

• Air India & Vistara Merger: Tata Group-owned Air India on Tuesday, November 12, completed its
much-awaited merger with Vistara to create an integrated airline, partly owned by Singapore Airlines, that
will be flying 1,20,000 passengers daily and connect over 90 destinations. The completion of the
amalgamation, which was announced in November 2022, comes within six weeks of the integration of Air
India Express and AIX Connect.

• The two mergers have created a full-service carrier and a low-cost carrier of scale for the Tata Group,
which is seeking to establish a "world-class global aviation company with an Indian heart." The
amalgamation marks a significant boost and consolidation in the Indian aviation space. Earlier in the day,
the nearly 10-year-old Vistara—a joint venture between Tata and Singapore Airlines—flew its last flight
from Delhi to Singapore.
AIR INDIA & VISTARA MERGER FORMS INDIA'S LARGEST INTERNATIONAL
CARRIER.

Singapore Airlines (SIA) will invest an additional ₹3,194.5 crore in the enlarged entity as part of the merger. The
enlarged Air India will operate over 5,600 weekly flights, connecting more than 90 domestic and international
destinations with a fleet of 210 aircraft, according to Air India.

Also, the new entity will fly over 1,20,000 passengers every day and offer extended worldwide connectivity to over
800 destinations through more than 75 codeshare and interline partners. It is now the country's largest international
carrier and the second-largest domestic carrier.

"Post-merger, Air India Group operates a combined fleet of 300 aircraft covering 55 domestic and 48 international
destinations, with 312 routes and 8,300 weekly flights. The collective staff strength stands at over 30,000," said Air
India in its official statement on Tuesday.

Singapore Airlines (SIA) also said the merger has been completed, and Air India will be an associated company
of the airline. The airline will invest an additional ₹3,194.5 crore in the enlarged entity. The airline intends to fund
the additional capital injection using SIA Group's internal cash resources.

"A lower additional capital injection amount, expected at about ₹31,945 million (equivalent to approximately $498
million). The expected additional capital injection amount remains unchanged to date, based on the current
targeted share allotment and the November 21, 2024 issuance date.

"There will be no change to SIA's equity interest of about 25.1 per cent in the enlarged Air India, arising from the
lower additional capital injection amount," it said in a filing to the Singapore Stock Exchange.
AIR INDIA & VISTARA MERGER:
FLIGHT DETAILS AND DESTINATIONS

While the Vistara flight code 'UK' has faded away, the airline's flights will have the code starting with the prefix 'AI2'
to help customers choose at the time of booking, as Vistara was well regarded for its services. In contrast, Air India
is in the transformation phase and grapples with some service issues.

"The merger of Air India and Vistara completes the consolidation and restructuring phase of the Air India Group's
post-privatization journey and is a significant milestone. Over the past two years, teams across the four airlines
have worked closely together and with other stakeholders to ensure that the transition of people, assets, operations
and, most importantly, customers, was as seamless as possible," said Campbell Wilson, Managing Director and
Chief Executive Officer, Air India.

The iconic 'Maharaja', once synonymous with Air India for a long time, will remain in a different form in the merged
entity. Around 4.5 million Club Vistara frequent flyer accounts have been transferred to Air India's flying returns
programme, renamed 'Maharaja Club'.

Air India said over 4,000 vendor contracts had been consolidated, and 2,70,000 customer bookings had been
migrated, among many other aspects. Vistara's last flight with the code 'UK' was UK115 from Delhi to Singapore,
while UK986 from Mumbai to Delhi was the carrier's last domestic flight. Starting a new chapter, the merged entity
operated its first flight with the code 'AI2286' from Doha to Mumbai.

In the domestic sector, the integrated entity's first flight, AI2984, took off from Mumbai to Delhi. All four flights
landed at their respective destinations early in the morning on Tuesday. The Air India-Vistara merger also marks
the second major airline industry consolidation in the country after 2006-2007.

Now, Air India is the lone full-service Indian carrier.

In 2006-07, Indian Airlines merged with Air India, and Air Sahara merged with Jet Airways. During the same period,
Air Deccan was amalgamated with Kingfisher Airlines. According to the latest official data, Air India, Vistara, and
AIX Connect had a combined domestic market share of just over 29 per cent in September.

Tata has long been associated with the airline industry, dating back to the 1930s. Jehangir Ratanji Dadabhoy
(JRD) Tata founded an airline in 1932 and named it Tata Airlines. In 1946, the aviation division of Tata Sons was
listed as Air India and in 1953, Air India was nationalised.
AIR INDIA OFFICIALLY COMPLETES MERGER WITH VISTARA, UNIFYING UNDER
ONE BRAND.

Air India and Vistara have officially merged, creating a larger airline under the Air India brand. Singapore Airlines,
previously invested in Vistara, now holds a 25.1% stake in the expanded Air India group. The merger creates a
stronger presence for Air India in the Indian aviation market with an expanded fleet and network.

The Tata Group Tuesday said it has completed the merger of Air India and Vistara, creating a unified full-service
airline under the Air India brand. Singapore Airlines (SIA), previously a 49% stakeholder in Vistara, now holds a
25.1% stake in the expanded Air India group, and will invest more capital in the entity.

Campbell Wilson, managing director of Air India, said in the statement that the merger culminates the “consolidation
and restructuring phase” of Air India Group’s transformation following Tata’s acquisition from the Indian
government in January 2022.

“Over the past two years, teams across the four airlines have worked closely together and with other stakeholders
to ensure that the transition of people, assets, operations, and, most importantly, customers, was as seamless as
possible,”

In a separate statement, Singapore Airlines emphasized its commitment to India’s aviation sector, highlighting its
direct stake in the growing market. “This merger reinforces SIA’s multi-hub strategy and underscores its long-
standing commitment to India”.

The merged entity now operates over 5,600 weekly flights across 90 domestic and international destinations, using
a fleet of 208 aircraft. The larger Air India group, comprising Air India and Air India Express (merged with AIX
Connect in October 2024), flies more than 8,300 weekly flights on 312 routes with a total fleet of 300 aircraft.

The integration of Vistara brings new routes and expanded capacity. The airline now serves 103 domestic and 71
international routes, connecting over 100 destinations. The consolidated group will handle over 120,000
passengers daily, with extended connectivity to over 800 global destinations through 75 codeshare and interline
agreements.
More than 6,000 Vistara employees have joined Air India’s organization, alongside the consolidation of over 4,000
vendor contracts. Additionally, 4.5 million Club Vistara loyalty accounts have been transferred to the newly
revamped Air India frequent flyer program, Maharaja Club, enhancing the airline’s customer loyalty offerings.

Wilson explained the complexity of the merger, citing the transfer of 270,000 customer bookings and extensive
collaboration between teams to streamline operations. "The merger of Air India and Vistara completes the
consolidation and restructuring phase of the Air India Group's post-privatization transformation journey and is thus
a significant milestone,"

As part of its operational restructuring, Vistara flights now operate under Air India’s ‘AI’ code, with four-digit
numbers beginning with ‘2’ (e.g., UK 955 is now AI 2955). The unified brand aims to provide a seamless booking
experience for customers while retaining some familiarity with former Vistara flight codes.

Tata Group has invested significantly in the future of Air India as part of its five-year Vihaan.AI transformation plan.
The group has committed to over 500 new aircraft and announced a $400 million interior retrofit program to upgrade
legacy aircraft. Air India has also opened a 600,000-square-foot training facility with a capacity to train 2,000
employees per day, bolstering its workforce and operational readiness. Additionally, a 12-bay maintenance facility
is under construction.

SIA said that its stake in Air India represents a strategic commitment to growth in India’s aviation market, one of
the world’s fastest-growing sectors. "SIA and its partner Tata Sons are firmly committed to supporting the growth
and success of the Air India Group, which has a significant presence in all key Indian airline market segments (full
service, low-cost, international, and domestic)," SIA.

The integrated entity’s first flights have already launched under the new Air India code. Flight AI2286 operated
between Doha and Mumbai as the group’s inaugural international service, while AI2984 flew from Mumbai to Delhi,
marking the first domestic route. The last flights under the Vistara code took off from Delhi to Singapore (UK115)
and from Mumbai to Delhi (UK986).
AIR INDIA & VISTARA MERGER PIVOTAL MOMENT FOR INDIAN AVIATION, SAYS
SINGAPORE AIRLINES CEO.

Singapore Airlines CEO Goh Choon Phong expressed support for the Air India-Vistara merger, seeing it as a
pivotal moment for Indian aviation. Singapore Airlines, now holding a 25.1% stake in Air India, aims to help elevate
the airline's position within the market. The merger, celebrated in New Delhi, combines a fleet of 300 aircraft and
over 30,000 employees.

New Delhi: Singapore Airlines CEO Goh Choon Phong on Monday said the airline group will support the ongoing
transformation of the enlarged Air India Group by offering "our stewardship and expertise where possible" as he
emphasised that Air India-Vistara merger marks a pivotal moment for Indian aviation. In his first comments after
the completion of the merger on November 11, he also said that Singapore Airlines is committed to deepening its
commercial collaboration with Air India.

Vistara was a joint venture between Singapore Airlines and Tatas, and with the merger, Singapore Airlines has a
25.1 per cent in Tata Group-owned Air India.

At a symbolic ceremony in the national capital on Monday, Tata Sons and Singapore Airlines celebrated the
merger. Tata Sons Chairman Natarajan Chandrasekaran, Goh Choon Phong, as well as senior management and
employees from Tatas, Singapore Airlines, Air India, and Vistara were present, according to a joint release by
Singapore Airlines and Tata Sons.

"This merger marks a pivotal moment for Indian aviation. Working with our valued, longstanding partner Tata Sons,
the SIA Group will support the ongoing transformation of the enlarged Air India Group, offering our stewardship
and expertise where possible.

"We are focused on helping to restore Air India to its leading position in the Indian aviation market, and creating
an airline Group that everyone in India can be proud of," Goh Choon Phong said in the release.
Chandrasekaran said the merger is an important milestone in the commitment to transform Air India into a world-
class global airline. "Singapore Airlines continues to be our strategic partner in our aviation journey and we
welcome them to Air India,"

Post merger, Air India Group operates a combined fleet of 300 aircraft covering 55 domestic and 48 international
destinations, with 312 routes and 8,300 flights per week. The total staff strength is more than 30,000.
TATA GROUP ACQUIRED LOSS-MAKING AIR INDIA FROM THE GOVERNMENT IN
JANUARY 2022.

For the SIA Group, Goh Choon Phong said the completion of the merger reinforces its long-standing direct
participation in one of the world's fastest-growing aviation markets.

"Singapore Airlines is committed to deepening our commercial collaboration with Air India, and finding ways to
provide greater value and enhanced options to our customers on flights between India and Singapore, and
beyond,"

As part of consolidating its airline business, Tata Group has merged Vistara with Air India and AIX Connect,
formerly AirAsia India, with Air India Express.

"Consolidating the four airlines within the Air India Group to one full service and one low-cost airline is part of the
ongoing, five-year Vihaan.AI transformation programme. This creates an Air India Group with a significant
presence across all key segments of the Indian market - domestic, international, full service, and low-cost
operations,"
DAILY DOMESTIC PASSENGER TRAFFIC CROSSES 5 LAKH MARK.

Domestic air travel in India reached a new milestone on Sunday, exceeding 500,000 passengers in a single day.
This surge is attributed to the ongoing wedding season, with popular destinations like Delhi and Mumbai
experiencing a significant increase in flight bookings compared to the previous year.

Domestic air passenger traffic crossed 5 lakh for the first time in a single day on Sunday, reflecting strong travel
demand amid festive and wedding seasons

Airline carried 5,05,412 passengers on Sunday) operating,3,173, according to data from the civil aviation ministry
released Monday.

The above numbers are a clear indication of how passenger travel trends have drastically changed this year,
moving up the charts post-Diwali rather than during the festive season.

October-December period is the highest growth period for Indian airlines passenger traffic increases due to
festivals followed by wedding season and new year celebrations.

"Indian travelers are on the move this wedding season, with around 35 lakh weddings expected across India
between November 23 and December 15, 2024. Flight bookings to major metro hubs and top leisure destinations
like Delhi, Mumbai, Srinagar, Jaipur, and Goa seeing a strong 70-80% YoY increase. Tier-II cities are powering
the wedding season this year,” Aloke Bajpai, group CEO at travel firm Ixigo said.
DOMESTIC AIR PASSENGER TRAFFIC HITS SINGLE-DAY RECORD OF 5.05 LAKH
ON NOVEMBER 17.

Marking a new record, domestic air passenger traffic crossed 5 lakh for the first time in a single day on Sunday,
reflecting strong travel demand amid festive and wedding seasons. Airlines carried 5,05,412 passengers on
Sunday (November 17) and the number of flight departures was at 3,173, according to the latest data from the civil
aviation ministry.

It was the first time that domestic air passenger traffic crossed the 5 lakh-mark in a single day.

"Domestic travel has witnessed strong demand during the festive season. Daily flown pax crossed 5 lakh on 17th
Nov.

"The high pax movement is largely backed by robust festive demand and the start of the wedding season. We
expect strong demand to continue in the winter season," Gaurav Patwari, Vice President - Air Category - at travel
portal Clear trip, said.
THE OCCUPANCY OF FLIGHTS OPERATED BY THE MAIN SCHEDULED CARRIERS
ON SUNDAY WERE ABOVE 90 PERCENT.

However, On Time Performance (OTP) of the airlines have been impacted in recent days due to various factors.

On Sunday, the OTP of IndiGo was at 74.2 per cent, followed by Alliance Air at 71 per cent and Akasa Air at 67.6
per cent. Among other airlines, SpiceJet and Air India's OTP stood at 66.1 per cent and 57.1 per cent, respectively.

In October, aviation watchdog DGCA said Indian airlines will operate 25,007 flights every week to and from 124
airports in the winter schedule that started from October 27.

The number of flights is three per cent higher than 24,275 departures per week from 125 airports in the current
summer schedule.

In comparison to the winter schedule 2023, the number of flights has increased by 5.37 per cent.
The winter schedule is from October 27, 2024 till March 29, 2025.

VISTARA AIRLINE SHARE'S

Singapore Airline,
25.90%

Air India, 74.10%

Singapore Airline Air India

 VISTARA AIRLINE SHARE PRICE

300

250

200
14-Nov
150
07-Nov

100 06-Nov
05-Nov
50
04-Nov
0
15-Feb
FEB
NOV

15-Feb 04-Nov 05-Nov 06-Nov 07-Nov 14-Nov

Here is some information about the share price of Vistar Amar Ltd:
• 52-week high: ₹280.00 on February 15, 2024
• 52-week low: ₹125.50 on November 14, 2024
• November 7, 2024: ₹162.75, with a low of ₹155.30
• November 6, 2024: ₹159.15, with a low of ₹159.00
• November 5, 2024: ₹164.60, with a low of ₹155.00
• November 4, 2024: ₹158.05, with a low of ₹149.75