Air India-Vistara Merger: Over 7,000 Staff Assessed, Roles Defined by June

The Air India-Vistara merger, a significant move in the aviation sector, is progressing steadily with the assessment of over 7,000 employees already completed. The roles and responsibilities of these employees will be clearly defined by the end of June, as shared by sources on Monday. This development was discussed in a detailed townhall meeting led by Air India CEO and MD Campbell Wilson and Vistara CEO Vinod Kannan, which lasted for approximately ninety minutes. The meeting, embracing both physical and digital attendance, underscored the merger's expected completion by the end of this year.

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With a combined workforce exceeding 23,500 employees, the merger is a monumental task. Wilson highlighted that the assessment of more than 7,000 staff members has been finalized, with their fitment to be concluded in June. This process will clarify the roles for all assessed employees, including flying staff. Additionally, around 120 pilots are already participating in secondments between Vistara and Air India, a practice that will continue to facilitate employee movement and integration between the two carriers.

To maintain transparency and fairness throughout this transition, a global consulting firm has been engaged to finalize the organizational structure. This approach leverages benchmarking and insights from the airline industry at large. The future plans for fleet expansion, network growth, and service enhancement have also been considered in shaping the new organizational framework.

During the townhall meeting, Kannan, who also serves as the chief integration officer for the merger, elaborated on the integration process and the preparatory work undertaken so far. He assured that employee fitment into the new structure is based strictly on merit and competency.

The merger announcement made in November 2022 aims to create one of the largest airline groups in the industry. Upon completion, Singapore Airlines will hold a 25.1 per cent stake in Air India. This strategic move comes after Tata Group's acquisition of Air India in January 2022, aiming to revitalize the loss-making carrier.

Wilson also shared insights into Air India’s vision post-merger and updated on the status of regulatory approvals. He emphasized that Air India and Vistara customers would benefit from an expanded route network worldwide. Furthermore, employees are expected to gain from being part of a larger group with a stable financial foundation and opportunities for accelerated growth.

The merger is currently awaiting approval from the National Company Law Tribunal (NCLT) in India. Earlier this year, Singapore's competition regulator CCCS granted conditional approval for the proposed merger. In September 2023, it received a green light from the Competition Commission of India (CCI), albeit with certain conditions attached.

As part of ongoing communications, department-wise townhall meetings are planned to keep staff informed about various aspects of the merger process. This initiative underscores a commitment to transparency and employee welfare as the two companies navigate through this significant transition.