Bharat Progress Report 2024: Vistara Merges With TATA Group’s Air India

TATA Group-owned Air India on November 12, legally completed its merger with Vistara, forming a unified full-service airline.

This comes within six weeks of integrating Air India Express and AIX Connect (formerly AirAsia India), marking the conclusion of Air India Group’s post-privatization consolidation phase.

The combined Air India-Vistara entity will now operate over 8,300 weekly flights on 312 routes, connecting more than 100 domestic and international destinations with a fleet of 300 aircraft. Singapore Airlines (SIA), a 25.1% stakeholder in Air India, announced an additional ₹3,194 crore investment into the enlarged entity.

Key Details

• The merger creates India’s largest international carrier and the second-largest domestic carrier.
• Air India Group will fly 1,20,000 passengers daily to over 90 destinations, supported by codeshare agreements with over 75 global partners.
• Air India will focus on metro-to-metro routes, key international destinations, and long-haul routes, while Air India Express will cater to tier-2 and tier-3 cities and short-haul international routes.

Campbell Wilson, MD & CEO of Air India, called the merger a “significant milestone” in the airline’s transformation. “Over the past two years, teams across four airlines worked together to ensure a seamless transition for people, assets, operations, and customers,” he said.

The merger also integrates Vistara’s frequent flyer program, with 4.5 million Club Vistara accounts migrated to Air India’s “Maharaja Club.” Additionally, over 4,000 vendor contracts and 2,70,000 customer bookings have been consolidated.

Vistara, a joint venture between Tata and Singapore Airlines, operated its final flight (UK115) from Delhi to Singapore on November 11, officially retiring its flight code “UK.” The unified airline’s first flights under the new structure operated on Tuesday, November 12.

A New Era for Indian Aviation

The merger establishes a stronger global presence for Air India, with the Tata Group aiming to build a “world-class global aviation company with an Indian heart.”

The integration consolidates the Indian aviation market, echoing the major mergers of the mid-2000s, such as Indian Airlines with Air India and Air Deccan with Kingfisher Airlines.

With this merger, Air India is now the sole full-service Indian carrier, further strengthening its legacy, which dates back to its founding by J.R.D. Tata in 1932.

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