Vistara will officially merge with Air India starting November 12, following the Indian government’s approval of foreign direct investment (FDI) by Singapore Airlines. This approval eliminates the final obstacle for the merger.Singapore Airlines, which owns 49% of Vistara, will hold a 25.1% stake in the newly merged Air India. The Tata Group, which owns the remaining 74.9% stake, will oversee the integration.
Transition Details
From November 12, Vistara’s aircraft and crew will operate under Air India. Vistara will cease bookings for travel after this date, with all Vistara flights being redirected to Air India’s website. Air India will gradually retire the Vistara brand. Vistara’s fleet of 70 aircraft, which currently holds a 10% domestic market share and 4.1% international share, will be integrated into Air India’s operations.
Customer Notifications
Customers with existing Vistara bookings for after November 12 will have their reservations transferred to Air India. This change will be phased in starting September, with customers being individually notified.
Future Plans
Air India is focusing on expanding its network and improving its frequent flyer program. The Tata Group is also working on merging its other airlines, AIX Connect and Air India Express, to create a comprehensive low-cost carrier and a full-service carrier. Singapore Airlines had committed ₹2,058.5 crore as part of its investment in Air India, with the aim of enhancing Air India’s market presence across key segments.
Operational Adjustments
Vistara’s Air Operator Certificate (AOC) will transition to Air India, with flight numbers for Vistara flights changing to Air India from November 12. The operational crew and schedules will remain largely unchanged until early 2025.
Employee Transition
Air India is working to integrate Vistara employees into its workforce. The HR teams are managing the transfer of employees who have not yet been seconded to Air India.
Customer Feedback
There is some scepticism about the merger’s impact on premium passengers. Vistara has been praised for its premium services, including its loyalty program and overall passenger experience. Observers and passengers hope that Air India will maintain these high standards post-merger.
Expert Opinions
Industry experts acknowledge Vistara’s reputation as a premium carrier and express hopes that Air India will continue to deliver a similar level of comfort and service to retain customer trust.
