Air India and Vistara Merger: A New Era for Indian Aviation

In November 2022, Singapore Airlines announced plans to merge its decade-old Vistara airline with Tata Group-owned Air India, aiming to create a dominant full-service carrier in both domestic and international markets. While the merger promised to reshape India’s aviation landscape, it hasn’t been without its challenges. Issues like pilot shortages, flight cancellations, and disputes over salary alignment for Vistara’s crew have complicated the process. However, as the merger reaches its final stages, significant changes are underway to integrate the two carriers.

Air India’s Strategy for a Smooth Transition

To ensure a seamless transition for passengers, Air India has deployed extra resources at key touchpoints and airports, including help desk kiosks and customer support staff wearing “How may I assist you?” branded t-shirts. These teams will guide Vistara passengers, helping them with old Vistara tickets and directing them to Air India support staff.

In the coming months, Vistara’s airport check-in counters and ticketing offices will be fully integrated with Air India’s operations. Vistara aircraft will be rebranded with a special four-digit Air India code starting with ‘2’. Additionally, over 270,000 customers who had booked Vistara flights have been migrated to Air India, and more than 4.5 million Vistara loyalty members are transitioning to Air India’s loyalty program.

Air India is also enhancing its fleet. The carrier has added six A350 aircraft to its widebody fleet, flying between Delhi and London, as well as Delhi and New York. Meanwhile, the narrow body fleet continues to be upgraded with new aircraft, and legacy planes are being refitted with modern interiors. Vistara’s catering service has also been extended to Air India flights.

In the first month post-merger, Air India expects to serve nearly 115,000 passengers who had originally booked Vistara tickets.

Key Leadership Changes Following the Merger

Vistara CEO Vinod Kanan, who also served as the Chief Integration Officer during the merger, will continue in his role and report directly to Air India CEO Campbell Wilson. Other senior leaders from Vistara are taking up new roles within the Air India Group. For instance, Vistara’s Chief Commercial Officer, Deepak Rajawat, will become Air India Express’s Chief Financial Officer, while Vikas Agarwal, the CFO of Air India Express, will transition to a new role at Air India.

Several Vistara executives will move to senior positions within other Tata Group companies, and the CFO of Vistara, Niyant Maru, will retire after overseeing the merger’s completion.

Tensions Among Air India Pilots

One of the lingering issues in the merger process involves differing retirement age limits for pilots at the two airlines. Air India pilots are required to retire at 58, while Vistara pilots have a retirement age of 60. While salary structures and working conditions have been aligned, the management has yet to address this disparity, leading to unrest among Air India’s pilot workforce.

The End of Vistara and Its Legacy

Vistara’s closure marks the end of one of India’s most beloved full-service airlines. Since its launch in 2015, Vistara earned a reputation for quality service, food, and customer satisfaction, building a loyal base of flyers. Its exit reduces the number of full-service carriers in India from five to just one, Air India, following the demise of Jet Airways and the rebranding of Air Sahara.

Many loyal Vistara passengers took to social media to share nostalgic memories, reminiscing about the airline that brought a fresh experience to Indian air travel.

IndiGo Enters the Premium Market

As Vistara winds down, another shift in the Indian aviation market is underway. IndiGo, the country’s largest low-cost carrier, is preparing to introduce business class on select domestic routes starting in mid-November. The move marks a departure from IndiGo’s traditional no-frills model, signaling growing demand for premium services in India’s aviation sector.

The Road Ahead for Air India

The merger with Vistara and the continued fleet upgrades signal a new chapter for Air India as it consolidates its position as India’s sole full-service carrier. With expanded international routes and a revamped customer experience, the airline aims to compete with global giants in the aviation industry while maintaining its commitment to service excellence.