Singapore Raises Concern Over Tata’s Acquisition of Air India

Singapore's antitrust authorities have expressed concern about Tata Group's acquisition of Air India and said it could limit competition on the India-Singapore route. Competition and Consumer Commission of Singapore (CCCS) has called on Tatas to make certain commitments to address concerns and has decided to investigate the transaction "in more detail", it said on Friday.

Tata Group, which owns a majority stake in Vistara, a joint venture of Tata Group with Singapore Airlines, completed its acquisition of Air India on January 27. Both airlines operate on the Mumbai-Singapore and Delhi-Singapore routes, carrying cargo between the two countries.

Singapore Airlines is a major competitor to Air India and Vistara on these routes. Regulators said they were requested by the Tata Group to decide whether the acquisition would violate Singapore's law, which declared or banned mergers that could reduce competition.

CCCS further assesses the extent to which Singapore Airlines competes with "merged companies" on these routes as it is a joint venture partner with Vistara's Tata Sons and a potential partner with Vistara under the Commercial Cooperation Framework Agreement Act.