With the government approving Singapore Airlines’ Rs 2,058.5-crore foreign direct investment in Air India, it’s going to be curtains for the 10-year old full-service carrier, Vistara from November 12.
Vistara is a 51:49 joint venture between Tata Group and SIA. Following the merger of Vistara into Air India, SIA will have 25.1% stake in the merged entity. The government’s approval is the last major clearance for the merger that was announced in November 2022.
With regulatory approvals in place, Air India CEO and MD Campbell Wilson told the employees on Friday that November 12 has been set as the date for the movement of aircraft and crew of Vistara to Air India.
Loss-making Vistara, which has a fleet of 70 planes and flies to 50 destinations, will be operating the last flight under its brand on November 11. It had a domestic market share of 10% in July.
“Starting September 3, customers will, progressively, no longer be able to make bookings with Vistara for travel on or after November 12,” Vistara said in a statement.
Thereafter, Vistara aircraft will be operated by Air India and bookings for the routes operated by these planes will be redirected to Air India’s website.
The merger, which will create one of the biggest airline groups, was approved by the National Company Law Tribunal (NCLT) in June. In March, Singapore’s competition regulator CCCS gave a conditional nod for the proposed deal.
Prior to that in September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.
Wilson on Friday said that for Vistara flights on or after November 12, the flight numbers will change to Air India ones, even though in nearly all cases the aircraft, schedule and operating crew will be unchanged until early 2025.
A set of frequently asked questions (FAQs) has also been prepared for passengers to help them with more information amid the merger process.
As part of the merger process, Air India has already started the fitment process for the staff. Loss-making Air India and Vistara, which started flying in January 2015, together have more than 23,000 employees.
In July, sources said that around 600 non-flying staff of Air India and Vistara are likely to be impacted by the merger and efforts will be made to provide job opportunities to the affected employees within Air India group and Tata group companies.
“SIA and Tata Sons are firmly committed to supporting the growth and success of the Air India Group, which post-merger will have a significant presence in all key Indian airline market segments (full service, low-cost, international, and domestic),” SIA said in a statement.
“This merger will reinforce SIA’s multi-hub strategy, and underscore its long-standing commitment to India through a direct stake in this large and rapidly growing aviation market,” it added.
Vistara CEO Vinod Kannan said the merger is about offering passengers more choice with a larger fleet and a wider network while elevating the overall travel experience.
Currently, the Tatas-owned Air India Group comprises Air India, Air India Express, AIX Connect (formerly AirAsia India) and Vistara. As part of consolidation of Tata Group’s airline business, AIX Connect is in the process of merging with Air India Express.
Air India said the FDI approval is an important milestone that facilitates the merger process between Vistara and the airline, and the broader transformation of the Air India Group.
Vistara has also come out with a detailed set of FAQs to provide more clarity to the passengers with respect to the merger.
The airline’s loyalty programme will be migrated to Air India.
In a message to its customers, Vistara said their personal data will be transferred to Air India while maintaining the highest level of confidentiality throughout the merger process.