Vistara-Air India Merger: What Happens To Club Vistara Points & Co-Branded Credit Cards Post Merger? Check!

As Vistara's last flights prepare to take off before its formal merger with Air India on November 12, 2024, frequent flyers are left wondering about the fate of their hard-earned Club Vistara (CV) points and the benefits associated with their co-branded credit cards. With the merger, Vistara's identity as an independent airline will cease, leaving passengers and loyalty program members in a state of uncertainty about what comes next.

This development marks a milestone in the Indian aviation industry, as Vistara, a joint venture between Tata Group and Singapore Airlines, will become part of the Air India family. The transition is more than just a change of airline name and ownership; it brings with it questions about how the integration will affect customers, particularly those who have invested in Vistara's loyalty program and its associated credit cards.

Starting from September 3, 2024, Vistara will no longer accept reservations for flights scheduled after November 12. This date also marks the beginning of the winding down of the Club Vistara frequent flyer program, which is set to merge with Air India's 'Flying Returns' program on November 12. This merger is poised to reshape the landscape for frequent flyers who have grown accustomed to the perks and benefits offered by Vistara's loyalty scheme.

Since its inception on January 9, 2015, Vistara has garnered a loyal customer base, partly due to its well-regarded Club Vistara program. The program, known for its seamless accumulation and redemption of points, will soon be a thing of the past. However, the airline has assured its customers that their existing Club Vistara points will not be lost in the transition.

The big question on the minds of Club Vistara members is, "What will happen to my points?" As of now, the official stance from Vistara is that the CV points will be integrated into the Flying Returns program. This means that your existing points will not disappear but will instead be converted into a corresponding number of Flying Returns miles. However, the exact conversion rate and details of how this process will work remain unclear, with Vistara promising more information closer to the merger date.

In a statement issued in May, Club Vistara reassured members: "The process of integration between Air India and Vistara is ongoing, while we await some regulatory approvals. As we work towards a merged, larger airline, Club Vistara will also merge with Air India's Flying Returns. The Club Vistara program will continue to exist until the integration is complete. Upon completion of the integration process, your Club Vistara account will be migrated to Air India's Flying Returns."

For loyal customers, this transition period is crucial. While the assurance that points will not be lost is comforting, the value of these points in the new program will determine whether frequent flyers feel the merger is beneficial or not.

Another area of concern for Vistara customers is the future of the co-branded credit cards that have been tied to the Club Vistara program. Vistara has partnerships with four major Indian banks, offering seven variants of credit cards that allow users to earn CV points with every purchase. These cards, such as the Club Vistara SBI Card, Axis Vistara Platinum, and Club Vistara IndusInd Bank Explorer, have been popular among frequent flyers due to the numerous benefits they offer.

These benefits include welcome bonuses, such as free economy or premium economy class tickets upon activation, and complimentary Club Vistara memberships that enhance the overall value of the cards. For premium cardholders, such as those with the IndusInd Explorer card, the perks are even more substantial, offering luxury hotel vouchers, shopping vouchers, and business class ticket vouchers along with CV Gold membership.

As of now, Vistara has not provided specific details about what will happen to these co-branded credit cards after the merger. However, it is likely that these cards will be phased out or transitioned into Air India's loyalty program offerings. Customers may receive equivalent benefits through Air India's Flying Returns program, but the structure and specifics of these benefits are yet to be clarified.

Vistara has acknowledged the importance of keeping its customers informed and has promised to provide more detailed updates in the coming months. For now, the airline encourages customers to continue using their cards and accumulating CV points as usual, with the understanding that these points will carry over to the Flying Returns program once the merger is finalized.

For frequent flyers who have relied on Vistara for their domestic and international travel needs, the coming months will be a period of adjustment. The merger with Air India is expected to create a stronger airline with a more extensive network, potentially offering even greater benefits to loyalty program members in the long run. However, the immediate concern is ensuring a smooth transition of existing benefits and points to the new program.