Vistara tips

“I assure you that the worst is behind us, and we have already stabilized our operations,” Vistara CEO Vinod Kannan wrote in an internal note to employees Thursday.

Air India’s ongoing transformation is one of the most closely watched developments in the aviation world – and rightfully so. The recently privatized airline, which serves a country of 1.4 billion people, is playing catch-up with its international peers. 

In November, the average daily international passenger traffic surged by 8.4% month-on-month, reaching 198.5 million. This significant increase marks the beginning of the inbound travel season, as indicated by data from the Ministry of Civil Aviation. 

The Tatas will let go of Indian full-service carrier Vistara as they look to merge the airline with the more “internationally-recognized” Air India, Air India CEO Campbell Wilson said on Monday.

Indian conglomerate Tata Group has sought fair-trade regulator Competition Commission of India‘s approval for a merger between its Air India and Vistara — the company’s joint venture with Singapore Airlines — into a single full service carrier called Air India. This is separate from the already underway (and regulator-approved) merger of Air India Express and Air Asia India into a single low cost carrier, named Air India Express. Tata would hold 51 percent of the total equity of the merged entity while Singapore Airlines would own a 25.1 percent minority stake, according to a filing on the regulator’s website. Air India would also absorb all Vistara employees. Vistara currently has about 5,103 employees, and around 80 percent are operational staff, including pilots, cabin crew and engineers. The merger, announced in November last year, would create a stronger rival to India’s dominant carrier IndiGo and help Singapore Airlines solidify its foothold in one of the world’s fastest-growing aviation markets. Air India recently placed a mega order for 470 aircraft from Boeing and Airbus as it plans to become a dominant player globally. 

Antitrust regulator Competition Commission of India (CCI) is scrutinizing Tata Group-owned Air India’s planned merger with Vistara over concerns about competition in the aviation sector. The watchdog has issued a show-cause notice to Air India to explain its position and asked the company for clarification on why the merger should not be investigated.