India's antitrust body approves Vistara merger with Air India

BENGALURU/NEW DELHI, Sept 3 (Reuters): India's antitrust body on Friday approved the merger of Tata group-owned Air India with sister airline Vistara, subject to compliance with voluntary commitments made by the carriers.
The approval comes amid growing concerns within the industry about a duopoly, with a merged Air India-Vistara and IndiGo controlling more than 75 per cent of the domestic market, while smaller rivals such as SpiceJet and Go First struggle.
Tata said in November it was merging its two full-service carriers Air India and Vistara, a joint venture between Tata and Singapore Airlines, to create a bigger airline that will take on local rivals such as IndiGo and Middle Eastern carriers that dominate outbound traffic from India.
The Competition Commission of India (CCI) had flagged that on some routes and categories - such as business class travel - the merged entity could have a monopoly, raising competition concerns, sources previously told Reuters.
The Tata group last month unveiled a new logo, branding and plane livery for Air India as part of a multi-million dollar transformation of the former state-run carrier.
Air India and Vistara will now be rebranded as Air India.