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Consolidating Skies: Air India Group's Latest Integration Milestone
GURUGRAM, 12 November 2024 - Air India has successfully completed the merger with Vistara, effectively consolidating two of its full-service airlines into a single, robust entity. This merger marks the second major integration within the Air India Group in just six weeks, following the unification of low-cost carriers Air India Express and AIX Connect, formerly Air Asia India, on 1 October 2024.
This development is a significant milestone in Air India's post-privatisation transformation under the Vihaan.AI programme, aiming to establish the Group as a world-class global aviation company. The consolidation brings together the four Tata-owned airlines into a streamlined structure consisting of a full-service and a low-cost carrier, significantly bolstering the Group's operational capabilities.
With the merger complete, the Air India Group now operates an impressive 8,300 weekly flights across 312 routes, connecting over 100 domestic and international destinations with a fleet of 300 aircraft. The new full-service carrier, Air India, will now operate over 5,600 weekly flights, reaching more than 90 destinations worldwide. Meanwhile, the low-cost Air India Express will provide 2,700 weekly flights to over 45 locations.
Vistara’s distinctive service experience will remain available to customers, as its aircraft are integrated into Air India’s operations with a special four-digit code beginning with “2.” Furthermore, Vistara's loyalty programme members have been smoothly transitioned to Air India's newly renamed Frequent Flyer scheme, the Maharaja Club.
Campbell Wilson, Air India's Managing Director and CEO, lauded the merger's completion as a pivotal moment in the company's restructuring efforts. He acknowledged the complexities involved in such a large-scale operation and expressed gratitude to key stakeholders, including the Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation (MoCA), for their support.
The merger enhances Air India's expansive reach and solidifies its position in domestic and international markets. It promises improved cost structures and operational efficiencies, setting a new competitive benchmark in the Indian aviation landscape.
The Group's transformation programme has also seen commitments towards significant infrastructure upgrades, including a $400 million retrofit programme for existing aircraft, the induction of over 9,000 new staff, and the construction of state-of-the-art training facilities and maintenance bases.
Singapore Airlines, holding a 49% share in Vistara, now transitions to a 25.1% shareholder in the merged Air India entity. This step is anticipated to further catalyse strategic partnerships and consolidations within the Indian aviation sector.
For passengers, this merger presents an array of enhanced flight options, improved connectivity, and superior service quality, reinforcing the positive trajectory of the Indian aviation industry.
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