Air India to Bid Goodbye to Vistara Brand in Airline Merger

Holiday Inn and Holiday Inn Express brands, together making up nearly 70% of InterContinental Hotels Group (IHG)’s portfolio in India, are going to remain the “driver of growth” in the market, said the company’s South West Asia Managing Director, Sudeep Jain.

Air India has entered into an interline partnership with Bangkok Airways that will allow the Tata Group-owned airline’s passengers connections to 10 Southeast Asian destinations beyond the Thai capital. 

Only 25% of Indians traveling abroad purchase travel insurance well in advance while making travel arrangements, while the majority of them wait until the last three days to buy it, according to data compiled by insurance aggregator Policybazaar.

Antitrust watchdog Competition Commission of India (CCI) has approved Tata group’s plan to merge its full-service carriers Air India and Vistara. 

Clearly Vinod Kannan, the CEO of Vistara, may have had to field this question on the possible Vistara-Air India merger one too many times.

The United Arab Emirates government on Sunday announced the lifting of all precautionary measures implemented in the country during Covid-19. With the lifting of restrictions, wearing of masks has now been made optional in all open and closed facilities, including places of worship and mosques. However, those categorized as “people of determination” would be required to wear mask while visiting health facilities and centers. The Al Hosn app would now only be required to furnish proof of vaccination and for test results inside and outside the country, when required. The green pass on the app would no longer be required to enter public facilities and sites. The requirement of a polymerase chain reaction test would also no longer be made mandatory for those attending or participating at sporting events. The authorities said they have decided to ease the restrictions after studying the epidemiological situation in the country and having monitored occupancy rates in hospitals and intensive care for Covid cases.

Tata Sons and Singapore Airlines have agreed to consolidate Air India and Vistara by March 2024.

Air India is close to placing landmark orders for as many as 500 jetliners worth tens of billions of dollars from both Airbus and Boeing as it carves out an ambitious renaissance under the Tata Group conglomerate, industry sources said on Sunday.

Indian carrier Vistara reported its first-ever net profit for the quarter ending December 2022, according to statement from the airline on Monday.  

Air India has sealed a jumbo deal for about 500 new planes worth more than $100 billion at list prices, in what could become the single largest order by any airline as it seeks to reinvent itself under its new owners, industry sources told Reuters.

India is expected to overtake Germany to become the world’s third most powerful travel and tourism market by 2032, according to World Travel and Tourism Council’s Economic Impact Research.

India will invest around $12 billion over the next two years in airports, aircraft and recruitment to meet the booming demand for air travel. The country aims to increase the number of airports from the present 148 to 220 by 2025, for which private builders will contribute roughly $9 billion, with the balance coming from the government-run Airports Authority of India. It entails new terminal construction, greenfield projects, and refurbishment of existing buildings, including old military airfields from the colonial era, as per a Bloomberg report. “We need to put in place the civil aviation infrastructure and capabilities that by 2047 would be able to support a $20 trillion economy within India,” said the country’s civil aviation minister Jyotiraditya Scindia at the ongoing CAPA India Aviation Summit in New Delhi. Scindia said passenger capacity at India’s six major airports is expected to grow to 420 million in four years from 192 million today, and Indian carriers’ fleet will grow to 2,000 aircraft in five years from 700. Additionally, India has eased leasing rules for airlines to lease more aircraft to address aircraft shortages as travel rebounds from the pandemic. He also highlighted how India had tweaked its airplane leasing program to enable airlines to add more aircraft to meet passenger demand, including more “wet leasing,” or renting of planes with crew, for domestic and international routes. Tata Group-owned Air India last month announced a record order for 470 jets and is due to take another 25 leased aircraft.