Vistara merger just another step by Air India to reclaim glory through Vihaan.AI programme

As the news broke of Vistara merging into Air India on Tuesday evening, nobody could have explained it better than the recently appointed CEO of Air India, Campbell Wilson. Expressing delight at the announcement, Wilson commended Vistara for achieving a lot ever since the 51:41 Singapore Airlines and Tata Group JV commenced operations in November 2013.

“The skills, people, systems, and processes that have driven Vistara’s success will complement, strengthen and accelerate Air India’s Vihaan.AI transformation programme, and enable the new Air India to more quickly attain the size, reach and quality befitting of a world-class airline proudly representing India around the globe,” he stated in a statement.

As Business Today pointed out in a previous report, the integration of all Tata group carriers is closely linked to the success of Vihaan.AI, the five-year plan chalked out by Air India to reclaim its position as a leading domestic and global carrier.

Also read: Will the Tatas merge Air India and Vistara? Does it really matter?

“With the coming together of Vistara and Air Asia into Air India the deck is cleared for a rapid integration and a clear road map for growth under the Air India brand,” observed the director & practice leader for transport & logistics at CRISIL Infrastructure Advisory, Jagannarayan Padmanabhan.

“The sector will immensely benefit due to the emergence of a single strong player. Passengers will get to benefit as they will continue to get the best-in-class service and increased network coverage due to the strategic tie-up with Singapore Airlines,” he added. 

 
The integration will be completed by 2024. As part of the deal, Singapore Airlines will be investing Rs 2,059 crore in Air India, which amounts to a 25.1 per cent shareholding in the latter.

“This signals an active involvement which will benefit both sides,” said the managing partner at the aviation advisory AT-TV, Satyendra Pandey.

Also read: Air India, Vistara to merge; Singapore Airlines, Tata Sons hash out the mega deal

Reacting to the announcement, an industry insider requesting anonymity remarked that with two new metro airports in Delhi (Noida) and Mumbai (Navi Mumbai) and a good economy, the completion of the merger would mark a momentous year for Indian aviation.

“Also, in terms of policy, one expects a lot of work of the present government would have been completed, given that 2024 is a general election year. So, one expects policy decisions regarding taxes on fuel and, more importantly, on traffic rights would be in place,” the person said.

However, this might put the Tata group in a piquant situation. The herculean effort of merging four different cultures, namely Air India, Vistara, AirAsia India, and Air India Express.

But an aggressive Air India under Wilson's stewardship seems determined to make the most of every opportunity coming in its flight path.

Also read: Over 15k staff, 218 planes! Tatas to soar high on Indian skies with Air India-Vistara merger