The Tata Group is working to merge Air India and Vistara into a single entity by 2025. This decision means that the Vistara brand will no longer exist after this year. The group will operate under two brands: Air India and AI Express.
Integration Progress
The integration of Air India Express with AIX Connect (formerly AirAsia India) is awaiting approval from the National Company Law Tribunal (NCLT). This process is expected to be completed in about two months. After approval, it will take another 4-5 months to merge the air operator certificates of AIX Connect with Air India Express.
source: istock
Acquisitions and Mergers
The Tatas acquired Air India and Air India Express in January 2022. Later in November, they announced the merger of Air India with Vistara and AIX Connect with Air India Express. As part of this transaction, AirAsia Bhd sold its 16.67% stake in AIX Connect to the Tatas for ₹155.65 crore.
Unified Operations
Air India Express and AIX Connect already share common branding on boarding passes and check-in procedures. Once the air operator certificates are merged, they will operate under a single International Air Transport Association code (IX), replacing AIX Connect's current I5 code.
Route Rationalization
Air India has optimized its routes, focusing on corporate travel routes like Mumbai-Dubai and Delhi-Dubai. Meanwhile, Air India Express is serving routes with more leisure travelers and connections from Tier-2 and Tier-3 cities.
source: istock
Merging Vistara with Air India
Another significant integration is the merger of full-service carrier Vistara with Air India. Vistara is currently a joint venture between Tata Sons (51%) and Singapore Airlines (49%). After the merger, Singapore Airlines will hold a 25.1% stake in the merged entity.
Transition Process
The merger process will involve gradually transferring people and aircraft from Vistara to Air India. Customers will be informed about the brand change. Although this transition has raised concerns among Vistara employees, the airline is addressing these issues.
Operational Adjustments
Vistara is currently operating at 95% capacity due to previous flight cancellations caused by poor rostering and pilot dissatisfaction. The network is expected to reach 100% by July-August, following approval from the Department for Promotion of Industry and Internal Trade and the initiation of human resource transfers.
