Why Air India plans to do away with Vistara brand after merger

Air India Chief Executive Officer Campbell Wilson said on Monday that after the merger, the Vistara brand will be scrapped. The full-service carrier will be known as Air India only, which is a much more recognisable brand outside India. Some of Vistara’s heritage would be retained in that ‘new manifestation’, said Wilson. 

"The intention is to have one full-service airline and one low-cost airline in the group. The full-service airline will be an amalgam of Air India and Vistara," Wilson said during a virtual media interaction. He added that the idea was to carry forth the heritage of both Air India and Vistara, and work is undergoing to that end. 

Tata Group that took over loss-making Air India in January last year, announced that Vistara will be merged with the airline, while AIX Connect, earlier known as AirAsia India will get integrated with Air India Express. 

Wilson said that Vistara has a very strong recognition in the Indian market but outside of the country, Air India is much more recognised due to its 90-year history. 

He said that they will retain the Maharaja brand, and that they want it to be part of the ‘future of Air India’. “It is very well loved... It will be part of our future,” said Wilson. 

Talking about the merger of the carriers, the CEO said that they are in the process of seeking clearance from the Competition Commission of India (CCI). "We are also working together with some external parties on the opportunities in an integrated business, the things that we need to focus on in the process of integration..." he added.

In the deal announced on November 29 last year, it was announced that Singapore Airlines will also acquire a 25.1 per cent stake in Air India after the Vistara merger. This will make the carrier the country’s largest international carrier and second-largest domestic carrier. The deal is expected to be completed by March 2024. 

Tata Group owns a 51 per cent stake and Singapore Airlines the rest in Vistara. 

(With PTI inputs)

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