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NEW DELHI: Vistara is preparing for merger into Air India latest by mid 2025 and has begun allaying concerns of its over 6,000 employees for life in the integrated full service carrier — apart from doing the same with its passengers also who may expect the same experience to continue there. In contemporary times Vistara is seen as the finest FSC from India after erstwhile Jet Airways whose wide body product was loved by travellers.
Vistara CEO Vinod Kannan on Monday, just ahead of the airline’s ninth anniversary, said while the required regulatory clearances are expected by mid 2024, the operational part of the merger —which as AI CEO Campbell Wilson recently said will depend on the Maharaja witnessing an overall improvement in its product — could take upto mid of next year to complete. He assured there will be no job losses in Vistara but the responsibilities could change in the merged entity.
Till this merger happens, the 67-aircraft-strong Vistara will continue to expand mainly on international routes from Mumbai as it adds the final three planes (one Boeing 787 and two Airbus A320s) in the coming few months. “We added 17 aircraft last calendar year and currently have a fleet size of 67. From the original Vistara order, three planes are yet to be delivered which will happen in the next few months. We will shortly announce more flights, mainly international ones from Mumbai,” Kannan said.
“We expect anti-trust clearances from several countries we operate to, including Singapore, along with the final nod from NCLT, aviation ministry, DGCA and for government approval for investment by Singapore Airlines in the next few months. While all these legal requirements are expected by mid 2024, the operational part of the merger could take upto a year more,” Kannan said.
While all that is seen as a done deal, Vistara employees are apprehensive as mergers in Indian airline space have so far not been successful. Jet-Sahara, Kingfisher-Deccan and Air India-Indian Airlines, all of which happened in 2006-7 period, are case in point. With the mighty Tatas putting their weight behind integrating the four airlines — AI-Vistara and Air India Express-AirAsia India (now AIX Connect) — this time promises to be different.
Kannan admitted concerns of employees. “The main concerns are ‘will we have a job in the merged airline and what will be our role there?’ There will be no job losses as more people will be needed in the fast-expanding AI. Roles may change. A person looking after four vertical here could be doing so for one or two in the merged entity. We are communicating with our employees and hope to have a have a happy landing,” Kannan said.
Asked how are Vistara passengers being comforted about continuity of same level of service and comfort in merged AI, he said the Vistara planes will be operated in the merged airline and AI is also getting new planes and will retrofit its existing planes. “Passengers Club Vistara points will migrate to to the new system in the merged airline.”
He added that Vistara, which started flying in January 2015, is “cash flow positive now and has not required fresh fund infusion from its stakeholders” Tata Group and SIA in recent times.
Vistara CEO Vinod Kannan on Monday, just ahead of the airline’s ninth anniversary, said while the required regulatory clearances are expected by mid 2024, the operational part of the merger —which as AI CEO Campbell Wilson recently said will depend on the Maharaja witnessing an overall improvement in its product — could take upto mid of next year to complete. He assured there will be no job losses in Vistara but the responsibilities could change in the merged entity.
Till this merger happens, the 67-aircraft-strong Vistara will continue to expand mainly on international routes from Mumbai as it adds the final three planes (one Boeing 787 and two Airbus A320s) in the coming few months. “We added 17 aircraft last calendar year and currently have a fleet size of 67. From the original Vistara order, three planes are yet to be delivered which will happen in the next few months. We will shortly announce more flights, mainly international ones from Mumbai,” Kannan said.
“We expect anti-trust clearances from several countries we operate to, including Singapore, along with the final nod from NCLT, aviation ministry, DGCA and for government approval for investment by Singapore Airlines in the next few months. While all these legal requirements are expected by mid 2024, the operational part of the merger could take upto a year more,” Kannan said.
While all that is seen as a done deal, Vistara employees are apprehensive as mergers in Indian airline space have so far not been successful. Jet-Sahara, Kingfisher-Deccan and Air India-Indian Airlines, all of which happened in 2006-7 period, are case in point. With the mighty Tatas putting their weight behind integrating the four airlines — AI-Vistara and Air India Express-AirAsia India (now AIX Connect) — this time promises to be different.
Kannan admitted concerns of employees. “The main concerns are ‘will we have a job in the merged airline and what will be our role there?’ There will be no job losses as more people will be needed in the fast-expanding AI. Roles may change. A person looking after four vertical here could be doing so for one or two in the merged entity. We are communicating with our employees and hope to have a have a happy landing,” Kannan said.
Asked how are Vistara passengers being comforted about continuity of same level of service and comfort in merged AI, he said the Vistara planes will be operated in the merged airline and AI is also getting new planes and will retrofit its existing planes. “Passengers Club Vistara points will migrate to to the new system in the merged airline.”
He added that Vistara, which started flying in January 2015, is “cash flow positive now and has not required fresh fund infusion from its stakeholders” Tata Group and SIA in recent times.
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