Air India CEO Wilson meets India watchdog chief on pending Vistara merger

The Competition Commission of India has been looking into the planned merger of Air India, which India’s Tata Group took over last year, with Vistara — a joint venture between Tata and Singapore Airlines.

• Shubham
• 05 August, 2023

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By: Shubham Ghosh

THE chief executive of Air India, Campbell Wilson, has held discussions with India’s antitrust head on its upcoming merger with Vistara, a sister airline, weeks after the watchdog raised concerns over the combined entity’s market power, informed sources told Reuters.

The Competition Commission of India (CCI) has been looking into the planned merger of Air India, which India’s Tata Group took over last year, with Vistara — a joint venture between Tata and Singapore Airlines. The merged entity is expected to challenge local rival and market leader IndiGo.

One of the sources said by sharing new details of the watchdog’s concerns that its confidential notice to the airline has raised worries about the combined entity’s market power on many routes — both international and domestic.

According to the CCI, its initial review showed that the market share of the Indian conglomerate could be more than 50 per cent in at least seven domestic markets, giving rise to competition concerns, the source added.

After a request from the company, Air India CEO Wilson and the general counsel of Tata Group, Siddharth Sharma, recently met CCI chief Ravneet Kaur to discuss the ongoing merger process, a few sources told Reuters.

According to them, such meetings are generally held to find a way forward and mitigate the watchdog’s concerns, the sources added on the condition of anonymity.

In June, Reuters reported that the CCI has been worried that some Air India-Vistara merged routes and categories — such as business class travel — could lead to a monopoly.

The watchdog’s scrutiny comes amid rising concerns within the industry about a duopoly, with a merged Air India-Vistara and IndiGo controlling over 75 per cent of the domestic market while smaller rivals such as SpiceJet and Go First struggle.