Vistara, India’s premier full-service airline, is set to merge with Air India on November 12, 2024, following the Indian government’s approval of Singapore Airlines’ (SIA) foreign direct investment (FDI) into the merged entity. Singapore Airlines, which previously held a 49% stake in Vistara, will now acquire a 25.1% stake in the expanded Air India Group by investing Rs 2,059 crore. This approval, along with other regulatory clearances, marks a significant milestone in the consolidation process, with SIA and Tata Sons committed to finalizing the merger by the end of 2024.
As the merger nears, Vistara and Air India are preparing to inform passengers about the changes, including the transition of Vistara flights to Air India operations. Vistara’s current fleet of 70 aircraft will continue to fly in their existing livery until they undergo heavy maintenance, after which they will be repainted in Air India’s new colors. Additionally, Vistara’s frequent flyers are being notified about the transfer of their loyalty points to Air India’s program, with the integration of personnel also underway.
There have been concerns about potential disruptions for passengers booked in Vistara’s premium cabins after the merger, but sources indicate that these are unlikely. Despite some internal discussions about delaying the merger to upgrade Air India’s planes, the decision was made to proceed as planned due to concerns from Vistara employees about key positions in the merged entity. This merger represents a significant consolidation in the Indian aviation market, expected to strengthen Air India’s competitive position across various market segments.
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