Tata, Singapore Airlines invested Rs 650 crore into Vistara ahead of merger: Report

The investments into Vistara come on the back of ballooning losses for the airline, which rose 35% in FY22 to hit Rs 2,031 crore

Tata Group-owned Vistara last month reportedly received a total equity investment of Rs 650 crore from its parent company and Singapore Airlines (SIA) to meet its working capital requirements.

According to a report by Business Standard, the Tata Group and SIA infused Rs 331.5 crore and Rs 318.5 crore, respectively, in Vistara on November 16, bringing its total equity investments since its inception in 2015 to Rs 9,900 crore. Of that figure, the Tata Group and SIA paid at least Rs 5,049 crore and Rs 4,851 crore, respectively, according to the publication.

The investments into Vistara come on the back of ballooning losses for the airline, which rose 35 per cent in FY22 to hit Rs 2,031 crore.

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"Vistara has not reached profitability as it has not reached a scale where there are cost and network efficiencies," a spokesperson for SIA told the publication.

Notably, the latest round of investment in Vistara—a 51:49 joint venture between the Tata Group and SIA—took place 13 days before its merger with Air India was announced.

Commenting on the merger, the SIA spokesperson said that Air India would be able to achieve "scale synergies and seamless cooperation" on both domestic and international fronts in addition to optimising routes and resource utilisation.

The merger is expected to be completed by March next year, and SIA will hold a 25.1 per cent share in the merged entity.