Vistara will be merged with Tata Group-owned Air India, Singapore Airlines said on Tuesday.

This merger was on the charts for a very long time and is now going to be completed by 2024.

Regulatory approval on the deal is still awaited.

This deal will make Tata group even stronger with 51 per cent stake in Vistara.

The remaining 49 per cent would be held by Singapore Airlines (SIA).

SIA will also invest Rs 2,058.5 crore in Air India.

Post this merger, Air India will be the country's leading domestic and international carrier with a combined fleet of 218 aircraft.

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SIA and Tata Sons will also raise additional capital for the growth of Air India in FY 2022-23 and FY 2023-24.

Tata Sons Chairman N Chandrasekaran said this merger is a milestone in the journey of making Air India a truly world-class airline.

Vistara was launched in January 2015, Air India Express started operations in 2005.

Vistara was ranked the second largest carrier in October with a domestic market share of 9.2 per cent, behind IndiGo with a market share of 56.7 per cent.