The Business Bytes
Mumbai, November 12, 2024 (TBB Bureau): The Air India Group marked a historic milestone on Tuesday with the completion of the operational and legal merger of Air India and Vistara, culminating in the creation of a robust full-service carrier. This transformation underscores the group’s vision to be a world-class airline and is a significant achievement in its post-privatisation journey.
With this merger, Air India Group now operates a formidable combined fleet of 300 aircraft, offering service across 55 domestic and 48 international destinations with 312 routes and 8,300 weekly flights. The new carrier also boasts a workforce exceeding 30,000 employees, strengthening its operational capabilities and customer service potential.
In a statement, Campbell Wilson, Managing Director and CEO of Air India, described the merger as a pivotal step in the consolidation phase of the Group’s five-year transformation program, Vihaan.AI. “The merger of Air India and Vistara completes the restructuring phase of the Air India Group’s transformation journey, marking a significant milestone,” Wilson noted, emphasizing the merger’s critical role in redefining Indian aviation.
Post-merger, Air India’s full-service entity will operate over 5,600 weekly flights, connecting 90+ destinations with a fleet of 208 aircraft. The low-cost branch, Air India Express, will maintain a strong presence, with 2,700 weekly flights connecting more than 45 domestic and international destinations through a fleet of 90 aircraft.
As part of the merger, Singapore Airlines, previously a 49% stakeholder in Vistara, now holds a 25.1% share in the Air India Group, aligning its interests with the expansion and growth of India’s national carrier.
“I would like to acknowledge the immense support received from the Directorate General of Civil Aviation (DGCA), Ministry of Civil Aviation (MoCA), Bureau of Civil Aviation Security (BCAS), and others in making this unprecedented merger possible,” Wilson added.
The integration also involved the unification of low-cost carriers Air India Express and AIX Connect (formerly AirAsia India) earlier in October. This strategic alignment of Tata-owned airlines under one umbrella with distinct full-service and low-cost brands is central to the Group’s transformation vision for Air India.
Air India will operate all full-service flights under the ‘AI’ airline code, while former Vistara aircraft will retain their distinct four-digit flight numbers starting with ‘2’ (e.g., UK 955 will become AI 2955). Passengers who were part of Vistara’s Club Vistara loyalty program have also been transitioned to Air India’s newly branded ‘Maharaja Club,’ creating a unified loyalty experience for the airline’s growing customer base.
As Air India Group forges ahead under the Vihaan.AI program, it is well-positioned to cement itself as a global aviation leader with an Indian heart, enhancing its international footprint and delivering exceptional service across the skies.
