Competition Commission of India has issued show-cause notice to Air India regarding the Air India-Vistara merger. Air India has 30 days period to respond to CCI show cause notice. The CCI notice has asked Air India why its merger with Vistara should not be probed further by the government agency over concerns of competition in domestic aviation sector. The companies are expecting to finish the merger by April 2024, subject to required approvals.

Tata Sons have complete stake in Air India while Vistara is a 49 percent owned by Singapore Airlines and 51 percent by Tata Sons.

Tata Sons and Singapore Airlines had filed an application for merger claiming that the proposed merger won’t change the competition in the aviation market.

As per legal experts, “The process has moved to phase 2 which will entail more discussion between the parties and CCI.” Instead of giving an expedited approval, CCI has asked for more information from concerned parties before making a final decision.