Ta-ta Vistara! Air India Merger Set for November 12

On November 12, 2024, Vistara will officially merge with Air India, bringing Tata Group's long-standing vision to fruition. The merger is a significant step toward creating a world-class airline that meets international standards, in collaboration with Singapore Airlines (SIA). This merger also marks a key moment in Tata Group patriarch Ratan Tata's nearly three-decade-old dream of transforming Air India into a globally recognized carrier.

The Indian government has approved Singapore Airlines' foreign direct investment (FDI) in Air India, allowing SIA to take a 25.1% stake in the joint venture by investing Rs 2,059 crore. This strategic move aims to strengthen Air India's position in both domestic and international markets, enhancing its service offerings across various segments, including full-service, low-cost, international, and domestic routes.

Starting from September 3, 2024, customers will notice changes as they will no longer be able to book Vistara flights for travel on or after the merger date, November 12. Instead, all flight bookings will be redirected to Air India's website, and Vistara operations will continue as usual until November 11, 2024.

Smooth Transition for Customers and Employees

Air India has already put measures in place to ensure a smooth transition for customers and employees. As part of the integration, Vistara's frequent flyer miles will be merged into Air India’s loyalty program, providing customers with more benefits and rewards. Those who have booked Vistara flights for travel after November 12 will see their reservations converted to Air India flight numbers during September, with individual notifications being sent out.

Air India CEO Campbell Wilson assured employees that while flight numbers and booking details will change, the aircraft, schedule, and operating crew will remain the same until early 2025. In a communication to staff, Wilson emphasized the importance of ensuring a smooth transition experience for both customers and colleagues, stating, "The joint team looks forward to offering our guests an expanded network, additional flight options, and an enhanced frequent flyer program."

Enhanced Network and Services Post-Merger

The merger will create an expanded airline network, combining Vistara's fleet of 70 aircraft (including 7 wide-body planes) with Air India's current fleet of 141 aircraft (including 60 wide-body planes). The integration is expected to offer more flight options, improved connectivity, and enhanced customer service across the combined network.

Singapore Airlines, which previously held a 49% stake in Vistara, expressed strong support for the merger. In a statement, SIA said, "SIA and Tata Sons are firmly committed to supporting the growth and success of Air India Group, which post-merger will have a significant presence in all key Indian airline market segments."

SIA further highlighted that this merger aligns with its multi-hub strategy and reinforces its commitment to India, a rapidly growing aviation market.

A Strategic Step Towards a Global Airline

Welcoming Vistara employees into the Air India fold, Wilson urged everyone to work together to ensure the smoothest possible transition. He reiterated the joint vision of creating a world-class, global airline that reflects India's rich culture and heritage, stating, "We are grateful for the support of our loyal customers through this next phase of building a world-class, world-scale, global airline with an Indian heart."

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This merger marks a transformative chapter in the history of Indian aviation, as Air India and Vistara come together to create a stronger, more competitive airline that serves a growing number of global and domestic travellers.