The Indian government has approved plans for direct investment in the Air India Group, TTG Asia reports. The green light means Singapore Airlines will take a 25.1% stake in Air India Group.

The group will include Vistara, a mainly domestic airline and formerly a rival to Air India. Vistara was established by Singapore Airlines and India’s Tata Sons in 2013, with Tata holding a controlling 51% share. 

Tata Sons then took a 100% stake in Air India in 2022, buying it for £1.7 billion from the Indian government following years of heavy losses.

The latest deal between the two is likely to conclude by the end of this year and should mean Singapore Airlines has more input into how Air India evolves.

Since privatisation, Air India has undergone an image rebrand and has moved its leisure routes from Heathrow to Gatwick, while expanding frequencies and upgrading service on key business routes from Heathrow to Mumbai and Delhi.