NEW DELHI: Today marks a significant milestone in the Indian aviation sector as Vistara, the full-service airline established in 2015 as a joint venture between Tata Group and Singapore Airlines, operates its final flights.
Effective November 12, Vistara will officially merge with the Air India Group, creating a unified full-service airline under Air India’s auspices.
Air India has announced that post-merger, flights previously operated by Vistara will adopt the flight code ‘AI2,’ signifying this integration into the larger Air India framework.
The strategic merger not only consolidates the airline’s services but also strengthens Air India’s position in a competitive market. Singapore Airlines, which initially held a 49 percent stake in Vistara, will maintain a vested interest, owning 25.1 percent of the revamped Air India entity. Such a merger is poised to enhance operational efficiencies and customer experiences by combining the strengths of both airlines.
Despite the structural changes, Air India has reassured customers that the Vistara service experience will remain intact. The spokesperson emphasised that Vistara’s aircraft, crew, and service continue to operate as they have, albeit under the new numbering system of ‘AI2XXX,’ which will be bookable via Air India’s website.
Customer satisfaction
The commitment to honouring the Vistara brand reflects the airline’s dedication to customer satisfaction during this transitional period.
Moreover, the merger aligns with Air India’s comprehensive strategy to enhance its fleet. The airline has commenced upgrades, including receiving new aircraft and refurbishing older models with modern interiors. Additionally, the extension of Vistara’s acclaimed catering services to Air India represents an effort to elevate the overall travel experience.
Meanwhile, Singapore Airlines has announced an additional investment of Rs3,194.5 crore in Air India following the merger of Vistara.
The terms of this merger illustrate a keen mutual interest in optimizing airline operations through shared expertise and resources. Singapore Airlines will not only relinquish its interest in Vistara but will also contribute Rs2,058.5 crore in cash to solidify its involvement in the enlarged Air India, further strengthening the Tata Group’s position in the Indian aviation landscape.
However, as with any amalgamation, challenges persist. A section of Air India pilots has expressed dissatisfaction concerning disparate retirement age policies, with Air India maintaining a retirement age of 58 years, in contrast to Vistara’s 60 years. This discord highlights the complexities of integrating two distinct corporate cultures and operational frameworks.
