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Tata Sons is rapidly merging Air India and Vistara, aiming for a seamless single airline operation by year-end, sources reveal.
Insiders reveal that Tata Sons is swiftly moving to finalize the amalgamation of Air India and Vistara, aiming to operate as a unified airline entity by year-end. Both airlines have initiated discussions with the civil aviation regulator and commenced the process of merging operational manuals and transitioning flight crews between the two carriers.
This merger marks a strategic endeavor by the conglomerate to streamline its aviation portfolio. While the consolidation of Air India and Vistara will give rise to a comprehensive full-service airline, the integration of AirAsia India and Air India Express will culminate in the formation of a unified low-cost carrier.
The timeline for integration hinges on obtaining regulatory approvals in a timely manner, according to sources close to the matter.
Although Air India CEO Campbell Wilson previously indicated that customer-facing aspects, including Vistara’s brand identity, would remain unchanged until 2025, insiders suggest that expediting this timeline is feasible.
Air India anticipates receiving clearance for the merger from the National Company Law Tribunal in the upcoming week. The NCLT’s Chandigarh bench has reserved its verdict on the matter. The Competition Commission of India had previously granted approval for the merger in September 2023, paving the way for the Tata Group to establish a unified, full-service carrier.
A favorable ruling from the NCLT would enable both airlines to commence the integration of their networks, personnel, and fleet allocations.
Leading consultancy firms such as BCG, Sabre, and Oliver Wyman are actively engaged in aligning workforce dynamics and route networks.
Given the divergence in operational manuals between the two airlines, consolidation efforts include merging manuals and providing operator conversion courses for Vistara’s flight crew, a process spanning approximately 40 days.
The integration process will unfold gradually to minimize disruptions to flight operations. Non-flying staff members can expect clarity regarding their roles by May and June, as affirmed by Vistara CEO Vinod Kannan.
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