Business as usual until merger with Air India: Vistara CEO allays employees' fears

In a message to employees, Vistara's CEO Vinod Kannan said that the merger process with Air India is "lengthy" and will take some time to complete. Until then, Vistara will continue to operate independently, said a report.

Soon after a joint release announced the planned merger of Air India and Vistara, Kannan stated, "In the short term, nothing changes and it is business as usual."

Kannan, speaking to the airline's over 4,700 employees, said they should not be concerned about their future, reported Moneycontrol.

"There will definitely be multiple opportunities - for growth, elevation and progress. Therefore, I urge you not to worry and speculate about your future.... I can assure you that we are on this journey together and will emerge stronger at the end of it," Kannan reportedly added.

In his email to employees, Kannan stated, "Though we have a common shareholder, we remain an independent entity vis a vis Air India till the entire process is completed."

"The process of amalgamation is lengthy...Till then, we will need to ensure that we maintain and exceed the high standards that we have set for ourselves."

This comes after Singapore Airlines (SIA) and Tata Sons announced a merger of Air India and Vistara with SIA investing Rs 2,059 crore in Air India as part of the deal.

Tata currently owns 49 percent of Vistara, while SIA currently owns 51 percent of the company. Earlier this year, the latter purchased Air India from the Indian government for Rs 18,000 crore.

India's top full-service airline, Vistara, was founded in 2013 and is a 51:49 joint venture between Tata Sons and Singapore Airlines Limited. It has international operations in the Middle East, Asia, and Europe.

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