Vistara begins discussions to integrate staff with Air India: Report

Vistara has reportedly begun discussions with Air India – both are part of the Tata Group – to integrate its staff with the latter. This comes as both the carriers wait for regulatory approvals for their merger. 

Vistara CEO Vinod Kannan said that any rationalisation of staff is unlikely, but not everyone might get the same role or position in Air India, according to a report in The Economic Times. Air India is also in the process of bringing various segments of its employees under one structure, the report added. 

The first round of integrations, the report stated, would take place between old and new Air India employees, which will be followed by that with Vistara and AirAsia India. 

Kannan said that the airline aims to get all the approvals for Vistara merger with Air India by April 2024. It might take a few months after that for the actual merger process. 

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However, some areas of integration, such as networks and brands, would be possible only after the regulatory approvals are granted, Kannan said. 

This development comes even as the Competition Commission of India (CCI) that is required to approve the merger, asked Air India why its merger with Vistara should not be investigated. Air India and Vistara told the competition watchdog that there will be no adverse impact on competition due to their merger. They also said that the CCI scrutiny would not have any material business impact on their operations.

Earlier media reports suggested that the CCI was concerned that the merged entity would have a monopoly on certain routes and categories such as the business class. Air India might eventually be required to give up certain routes or reduce frequency. 

With the completion of the merger, the entity would become the full-service airline operating in India. 

Also read: Air India, Vistara tells CCI that merger won’t have adverse impact

Also read: Competition Commission only following laid down procedures in Air India-Vistara merger