November 29 marks the death anniversary of legendary industrialist JRD Tata whose love for flying led to the creation of Air India. Now, the date also marks the merger of Air India with Vistara as Singapore Airlines (SIA) and Tata Sons join hands to create a new aviation major which will strengthen its presence in domestic and international skies.
SIA has agreed to invest Rs 2,058.5 crore (US $250 million) in Air India as part of the transaction, as per a media release issued on November 29.
The merger, which is "aimed to be completed by March 2024", will give SIA a 25.1 per cent stake in an enlarged Air India group with a significant presence in all key market segments, it added.
Commenting on the Air India-Vistara merger, Tata Sons chairman N Chandrasekharan said it is "an important milestone in our journey to make Air India a truly world-class airline".
"We are excited with the opportunity of creating a strong Air India which would offer both full-service and low-cost service across domestic and international routes. We would like to thank Singapore Airlines for their continued partnership," he added.
According to SAI chief executive officer Goh Choon Phong, the merger provides an an opportunity to deepen the company's relationship with Tata and "participate directly in an exciting new growth phase in India’s aviation market".
"We will work together to support Air India’s transformation programme, unlock its significant potential, and restore it to its position as a leading airline on the global stage," he said.
The development comes about a couple of months after the Tata Group was declared the winner of Air India bid on October 8.
As the debt-ridden carrier returned to the Tata fold after 68 years, Ratan Tata had rejoiced over the homecoming moment by recalling Jehangir Ratanji Dadabhoy (JRD) Tata, who in 1932 started Tata Airlines which became Air India in 1946.
"Mr JRD Tata would have been overjoyed if he was in our midst today," he had said.
"On an emotional note, Air India. under the leadership of Mr JRD Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world," Ratan Tata added.
The JRD connect JRD Tata was the first Indian to receive a commercial pilot's license on February 10 in 1929 setting the stage that eventually led to the creation of Air India.
In a tweet, the Tata Group revealed that as JRD 'Jeh' Tata earned the first commercial aviator's certificate in India, fulfilling a dream that he had nurtured since he was 15, it set the stage for the much bigger dream -- giving wings to the nation.
At 24, JRD Tata set up a flying club in Mumbai. Tata Air Service was then set up by him which later became Air India. He also was the pilot of its inaugural flight in October 1932. JRD Tata flew from Karachi to Mumbai (then Bombay) in a Puss Moth (a British three-seater high-wing monoplane aeroplane) with just a pair of goggles, his aviator’s license and a slide rule. Back then, JRD Tata flew at a “100 miles an hour” – considered very high speed in 1932.
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