Vistara is planning to merge with Air India by mid-2025 and has been reassuring its over 6,000 staff about their future with the integrated full-service carrier, as well as its passengers, who may anticipate the same experience to continue. Vistara is now regarded as the best FSC in India, after Jet Airways, which was popular among tourists due to its broad-body product.
Vistara CEO Vinod Kannan declared on Monday, just ahead of the airline’s ninth anniversary, that while the necessary regulatory clearances are expected by mid-2024, the operational part of the merger, which, as AI CEO Campbell Wilson recently stated, will be dependent on the Maharaja improving its product overall, could take up to the middle of next year to complete. He stated that no jobs would be lost at Vistara, but that duties would alter under the merged firm.
Until this merger occurs, Vistara, which has 67 aircraft, will continue to develop primarily on international routes from Mumbai, adding the remaining three jets (one Boeing 787 and two Airbus A320s) over the next few months.
Words of CEO
“Last calendar year, we added 17 aircraft and now have a fleet of 67. Three planes from the initial Vistara order have yet to be delivered, although they will do so in the next months. We will soon announce more flights, primarily foreign ones, from Mumbai,” Kannan said.
“We expect anti-trust approvals from various countries we operate in, including Singapore, as well as final approval from the NCLT, aviation ministry, DGCA, and government permission for Singapore Airlines’ investment in the coming months.” According to Kannan, the legal prerequisites for the merger are expected by mid-2024, while the operational component might take up to a year more.
When asked how Vistara passengers can be certain that the same level of service and comfort will be maintained in the merged AI, he stated that Vistara jets will be flown by the merged airline and that Al will receive new planes and upgrade its existing ones. “Passengers Club Vistara points will migrate to the new system in the merged airline.”
Vistara, which began flying in January 2015, is currently “cash flow positive and has not required fresh fund infusion from its stakeholders” (Tata Group and SIA).
Merger affecting Vistara Employees
While everything appears to be in order, Vistara employees are concerned since mergers in the Indian airline industry have yet to succeed. Jet-Sahara, Kingfisher-Deccan, and Air India-Indian Airlines, all of which occurred during the 2006-07 era, are examples. This time, with the great Tatas throwing their weight behind the integration of the four airlines AI-Vistara and Air India Express-AirAsia India (now AIX Connect), things look promising.
Kannan acknowledged the concerns of staff. “The main concerns are ‘will we have a job in the merged airline and what will our role be there?'” There will be no job losses since more individuals are required in the rapidly increasing AI. Roles may alter. A person in charge of four verticals here may be responsible for one or two in the combined business. We are connecting with our colleagues and expect to have a nice landing,” Kannan added.
Merger to Boost Singapore Airlines in the Indian Market
Singapore Airlines Group posted its greatest-ever net profit on Tuesday and listed several strategic plans, including the proposed merger of Vistara and Air India to increase the Singaporean carrier’s footprint in the Indian market.
Vistara is a joint venture between Singapore Airlines and Tata Group, which owns a 51% interest. The effort to integrate Vistara with Air India is ongoing.
On Tuesday, Singapore Airlines (SIA) Group reported a record net profit of 2,157 million Singapore dollars for fiscal year 2022-23. It reported a net loss of SGD 962 million the previous year.
“This was mainly driven by better operating performance (+SGD 3,302 million) and lower net finance charges (+SGD 338 million), and partially offset by a tax expense versus a tax credit last year (around SGD 615 million),” the company stated in a press statement.
