Timeline: How SIA's India bet led to a 25.1% stake in Air India

Singapore Airlines (SIA) and Tata Sons entered a joint venture to establish a new full-service airline, Vistara, in India during the 1990s. This venture was initially proposed in 1995 but was not pursued. In 1997, India's civil aviation policy barred foreign airlines from holding equity in Indian domestic carriers, which led to SIA withdrawing from the Air India bid.

In 2012, India permitted foreign airlines to invest up to 49% in Indian companies operating scheduled and non-scheduled air transport services. In 2013, SIA and Tata Sons announced plans to establish Vistara, with SIA owning a 49% share and Tata Sons a 51% share. Vistara commenced operations in January 2015, and by September of that year, SIA had invested S$100 million in the airline.

Over the following years, both SIA and Tata Sons injected significant capital into Vistara, with the airline receiving a total of about S$1.5 billion in investments. In January 2022, Tata Sons acquired full ownership of Air India from the Indian government, and later that month, SIA and Tata Sons signed an agreement to merge Vistara into Air India.

In exchange for a 25.1% stake in the merged Air India, SIA invested an additional 20.585 billion rupees (around US$250 million) in the airline, as well as the potential for further funding.