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Singapore's competition watchdog said on Tuesday it has granted approval for the merger between Air India and Vistara, a joint venture between Indian conglomerate Tata Group and Singapore Airlines, subject to certain conditions.

Singapore's flagship carrier had announced its plan to merge Vistara and Air India in November 2022, in a bid to create a dominant position as bigger full-service airline in domestic and international skies.

The Competition and Consumer Commission of Singapore has identified certain competition concerns in assessing the various transactions regarding the merger.

The watchdog said the parties possess the majority of market shares among airlines operating direct flights on four routes of concern — that is between Singapore and Indian cities of New Delhi, Mumbai, Chennai and Tiruchirapalli.

The watchdog said the respective parties have submitted their proposals to avoid the competition issues which it finds sufficient to address the concerns.

Singapore Airlines and Air India did not immediately respond to a Reuters request for comments.