Air India-Vistara Merger Progress: What We Know So Far

16.07.2024 - 05:27 / skift.com / Campbell Wilson / Bulbul Dhawan

The Tata group is likely to retain the senior management of full-service airline Air India post its merger with Vistara, an Economic Times report said. While Campbell Wilson will continue as the CEO of Air India, the merged entity will have Nipun Aggarwal as the chief commercial and transformation officer, while Sanjay Sharma will continue as CFO. 

The current Vistara CEO Vinod Kannan will likely return to parent company Singapore Airlines, the report added. Deepak Rajawat, the chief commercial officer of Vistara, is likely to join the merged entity. 

Post-Merger Expectations: The merged entity will operate under the Air India brand.

In the run up to the merger, Air India is upgrading its fleet. Last year, it placed an order for 470 new aircraft with Boeing and Airbus. It is set to retrofit over 100 planes, including 40 widebody aircraft, and has ordered about 25,000 seats as a part of this revamp.

Air India also introduced premium economy, a cabin class that previously only Vistara offered in India. In its new Airbus A350-900 widebody jets, Air India has introduced a three-class configuration: Business Class, Premium Economy Class, and Economy Class. While Air India’s website includes First Class in its cabin experience, it is not clear whether First Class will be offered aboard its flights going forward and if so, on what routes and which airplanes.

The process to merge Vistara’s loyalty program Club Vistara with Air India’s Flying Returns has also begun. In a mail sent out in May, Vistara told its customers that the Club Vistara program will continue until the integration is complete. The airline has given clarity on how the travelers’ tier status, points balance, future bookings, and award vouchers would be affected post integration. However, details regarding the co-brand credit cards have yet to be shared.

Merger Progress: Last month, the Air India-Vistara merger received the approval of National Company Law Tribunal, the Indians quasi-judicial body that looks at issues concerning companies. The approval paved the way for the airlines to begin the integration of their networks, human resources, and fleet deployments. 

While awaiting the approval, the companies had begun assessing their employees to fit their roles and responsibilities. In a meeting held by Wilson and Kannan in May, they shared that the merger is likely to be completed by mid-2025. However, as part of the merger, around 600 non-flying staff are expected to be let go.

Online travel agency Cleartrip has launched a new corporate travel solution – ‘Cleartrip for Work’ (CFW). The company is targeting business travelers, “urban entrepreneurs”, and startup founders with this solution, it said in a statement. 

“Of the more than 30