look news india
Vistara Air India Deal: Today Vistara is going to be merged with Air India Group. From now on, to get Vistara service, you will have to go to Air India's website. With this merger, Air India will be the only full service airline in the country. Over the last 17 years the number of full service airlines in the Indian airline sector has declined from five to one.
The foreign investment (FDI) liberalization policy has increased the dominance of foreign airline companies. Singapore Airlines holds 49 percent stake in Vistara. After this merger, its stake in Air India will reduce to 25.1 percent. Full service airline companies include support services in the ticket fare itself.
Many airlines closed down due to FDI relaxation
The UPA government led by Prime Minister Manmohan Singh had allowed foreign airline companies to buy up to 49 percent stake in domestic companies. Due to which Etihad Airways of Abu Dhabi bought 24 percent stake in Jet Airways. Apart from this, AirAsia India and Vistara were born. Five Indian airlines were operating as full service carriers in the last 10 years. But under debt and as part of a merger, its number was reduced to two. Now after the merger with Vistara, Air India will operate as the sole full service carrier.
History of Indian Airlines
Kingfisher closed down in 2012, Air Sahara acquired Jet Airways and renamed it JetLite. But she was not able to walk. Jet Airways went into liquidation in 2019. Another FSC was also closed in April 2019 after Jet Airways was implicated in financial irregularities.
low cost airline companies
With the increasing trend of air travel, low cost and budget airlines have increased in popularity. IndiGo has 60 percent market share in India, Axa Air, SpiceJet, Air India Express are also low cost airlines. In which there is more traffic.