The much-anticipated merger between Vistara and Air India is expected to be finalised on November 12, following a significant development on Friday when Singapore Airlines (SIA) announced it had received approval from the Indian government for foreign direct investment (FDI) as part of the merger process.
Starting from September 3, 2024, customers will no longer be able to book Vistara flights for travel on or after November 12, 2024, as all Vistara aircraft will be operated under the Air India brand. Bookings for these routes will now be redirected to Air India’s website. Until November 11, 2024, Vistara will continue to operate its flights as usual, ensuring minimal disruption to passengers.
Both airlines are working diligently to ensure a smooth transition for customers during this period. Clear communication and support will be available, including a set of FAQs on Vistara’s website, to help guide passengers through the changes. Vistara CEO Vinod Kannan emphasized that the merger would offer customers enhanced travel options, a larger fleet, and a superior overall experience. “The integration is not just about merging fleets but also about merging values and commitments to providing the best service to our customers,” Kannan stated.
Campbell Wilson, CEO of Air India, highlighted the collaborative efforts between the two airlines to ensure a seamless merger of services, staff, and customer care. “Our teams are working closely to ensure that the transition is smooth and that our customers experience no disruption in service,” Wilson said.
The merger, initially announced in November 2022, aims to create one of the largest airline groups globally, combining the strengths of two major players in the aviation industry. This strategic move is designed to bolster Air India’s position in the global aviation market by offering a more extensive network and an enhanced range of services.
With approval from the Indian government, Singapore Airlines will acquire a 25.1 percent stake in the newly enlarged Air India, which is owned by Tata Group. Vistara, currently a 51:49 joint venture between Tata Group and Singapore Airlines, will be fully integrated into Air India by the end of this year. In a recent filing to the Singapore Stock Exchange, Singapore Airlines stated, “The FDI approval, together with antitrust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to date, represent a significant development towards the completion of the proposed merger.”
The merger is expected to reshape the aviation landscape in India, positioning Air India as a leading carrier both domestically and internationally. Customers can look forward to an expanded range of services, greater connectivity, and a unified loyalty program designed to enhance the overall travel experience. As the merger progresses, updates on travel-related services will be provided through the airlines’ websites, social media channels, and email, ensuring customers are well-informed and supported throughout the transition. The combined entity will focus on leveraging synergies to optimize operations, reduce costs, and offer competitive pricing, further enhancing its appeal in a highly competitive market.
