India’s domestic airline, Air India, has finally been merged with Vistara. The airline is now all geared up to revolutionize Indian airspace. The merged Air India will fly over 5,600 weekly flights to over 90 destinations worldwide, a historic moment in its operations.
The new airline will link such an immense domestic route network of 103 routes and overseas destinations of 71, significantly increasing its market reach in local as well as foreign markets. Now, the increased connectivity has brought Air India to the top of the aviation industry, providing ample choices for passengers flying with it.
Singapore Airlines’ 25.1% Holding In New Air India Company
Singapore Airlines now owns a 25.1% stake in the new Air India entity after the integration. The strategic holding of shares of Singapore Airlines from this merger is indicative of the worldwide positioning of the airline and the importance of bilateral collaborations in the growth of the aviation industry. This stake acquisition comes close on the heels of Air India low-cost carriers, Air India Express, and AIX Connect (previously AirAsia India) being integrated in October 2024.
Campbell Wilson, the Managing Director and CEO of Air India, said, “This marks the final consolidation and restructuring phase of the post-privatisation transformation of the Air India Group.”
He also noted that there was careful planning and collaboration behind this seamless transition, beneficial to passengers as well as the operations of the airline.
The Farewell For Vistara
With nine years of independent operation under its belt, the marriage between Tata Group and Singapore Airlines came to a close. Founded on the day of its commencement, Vistara made its name by sticking to premium services, playing a crucial role in India’s aviation growth curve. Vistara Flight from Delhi to Singapore marked the end of this independent journey while opening up new pages of history for Air India.
Air India has already introduced its maiden international service post-merger under its streamlined operations. The first international journey after the merger was the Doha to Mumbai AI2286, while the first domestic flight AI2984 was from Mumbai to Delhi.
With the simplification of the passenger experience, the flights previously operated by Vistara have been allocated the flight code AI2XXX, meaning they now can be easily recognizable for passengers at the time of booking.
India’s Aviation Market
The two carriers first announced the merger in November 2022, just months after the Tata Group acquired Air India from the government of India in January 2022. All the consolidation efforts made by Tata have already taken shape into the Indian aviation markets, and Air India, along with Vistara and AIX Connect, collectively accounted for a domestic market share of 29% as of September 2024. This strategic expansion puts it well firmly in the ranks of the leading forces in not only domestic but also international air travel.
