Vistara To Take Off For Last Time Before Merger With Air India; A Snippet Of Airline's Journey & What's Ahead!

After captivating air travellers for nearly a decade, Vistara will take its final flight on November 11, 2024. The Tata group-owned airline, established in January 2015 as a joint venture with Singapore Airlines, has built a loyal customer base with its premium services and exceptional flying experience. Now, as part of a strategic consolidation in the Indian aviation industry, Vistara will merge with Air India, marking the end of an era for the airline brand. From November 12, Vistara flights will officially operate under Air India's banner, bringing significant changes for passengers, employees, and the entire aviation sector.

Why Have Vistara and Air India Been Merged?

The merger between Air India and Vistara is part of Tata Group's broader strategy to streamline its aviation portfolio under one unified brand. This strategic move is expected to enhance operational efficiency and improve the overall customer experience. With the government's approval of foreign direct investment (FDI) by Singapore Airlines in August 2024, the merger has finally cleared its last hurdle. Following the merger, Singapore Airlines will hold a 25.1% stake in the combined entity, Air India, making its long-term partnership with the Tata Group even stronger.

The partnership between Singapore Airlines and Tata Group began in 2015 when Vistara was established as a joint venture. The merger with Air India is a natural progression as the two carriers look to strengthen their position in the increasingly competitive aviation sector. Singapore Airlines, once a major stakeholder in Vistara with a 49% stake, will now own a significant share in Air India.

Transition of Vistara Bookings and Services Post-November 11

For those who had booked flights with Vistara after November 11, the transition to Air India will be seamless. Although Vistara closed all its bookings on September 3, 2024, passengers who have tickets for travel on or after November 12 will find their bookings transferred to Air India. The merger also brings an end to Vistara's Club Vistara loyalty program, which will be integrated into Air India's Flying Returns program. From November 12 onwards, all Vistara customers can log in to their accounts on Air India's website, where they will find their points, status, and rewards migrated to the new system.

What Changes to Expect on Vistara Flights?

One of the most visible changes passengers will notice after the merger is the renumbering of flights. Vistara aircraft will now operate under a special four-digit Air India code, starting with 'AI 2.' For example, the Vistara flight UK 955 will become AI 2955. While the codes will change, the flight routes and schedules will remain the same. Passengers will still be able to enjoy the same in-flight experience that Vistara is known for, including its signature food and services, which will continue without any immediate changes. Air India has assured customers that the aircraft will be operated by the same crew.

A Historical Perspective

The journey of Tata Group in the aviation industry is a long and storied one, dating back to 1932 when JRD Tata founded Tata Airlines, India's first airline. Over the decades, the Tata name has remained synonymous with quality aviation, but the group's involvement in the airline industry saw many twists and turns before it finally regained control of Air India in 2022. Let's take a closer look at the key milestones in Tata Group's aviation journey:

1932: Tata Airlines Founded: The foundation of India's first airline, Tata Airlines, was laid by JRD Tata. The airline initially operated mail and passenger services between Karachi and Bombay.

1946: Tata Airlines Becomes Air India: Tata Airlines was renamed Air India and continued its operations as India's national carrier after the government acquired a 49% stake in the airline in 1953. Later, Air India was fully nationalized.

2001: Tata Group's Interest in Air India: Tata Group, along with Singapore Airlines, placed a bid to acquire a stake in Air India, but this bid was unsuccessful.

2013: Tata Group Re-enters Aviation: After a 12-year hiatus, Tata Group partnered with AirAsia and Singapore Airlines to enter the Indian aviation market. This resulted in the launch of AirAsia India (a low-cost carrier) and Vistara (a full-service airline).

2020: Tata Group Bids for Air India: The Indian government decided to privatize Air India, and Tata Group submitted a bid to acquire the airline.

2021: Tata Group Acquires Air India: Tata Group won the bid to acquire Air India, making its long-awaited return to the airline after nearly 70 years. Tata Group also acquired Air India Express, Air India's low-cost subsidiary, and a 50% stake in Air India SATS.

2022: Consolidation Begins: Tata Group began the process of consolidating its airline entities under the Air India brand.

2023: Vistara Merger Announcement: The merger of Vistara with Air India was officially announced in November 2023, with a timeline set for its completion by November 2024.

2024: Merger and Integration: With the integration of Vistara into Air India now finalized, Tata Group's aviation business is streamlined into a single.

Road Ahead for Air India

With the merger, the number of full-service carriers (FSCs) in India will drop to just one, as Vistara's operations fold into Air India. This marks the end of an era for other FSCs like Kingfisher, Air Sahara, and Jet Airways, which no longer operate. In fact, the merger will further consolidate Air India's position as the lone full-service carrier in India, following a trend where low-cost carriers (LCCs) such as IndiGo have dominated the skies in recent years.

This consolidation is expected to lead to better economies of scale for Air India, enabling the carrier to enhance its fleet, network, and passenger offerings. Tata Group has made significant strides since taking over Air India, reducing losses, improving operational metrics, and providing customers with enhanced services. The merger with Vistara will bring over 200 aircraft into the Air India fleet, offering improved connectivity to 90 domestic and international destinations.

What Does the Merger Mean for Vistara Employees?

The merger also impacts the employees of both airlines. With more than 23,500 employees between Air India and Vistara, the integration process has been ongoing for months. Vistara employees have been transferred to Air India, with seniority lists and salary structures being unified as part of the merger process. Although Vistara's agile workforce may face challenges adjusting to the more complex bureaucratic systems at Air India, the long-term goal is to create a unified, efficient workforce across the Tata Group's aviation businesses.

For cabin crew members, the biggest change will be the shift from Vistara's uniforms to Air India's attire. The airlines have already aligned crew salaries and benefits, and future career progression will be governed by a unified seniority structure.

What Passengers Can Expect?

Passengers flying on former Vistara planes operated by Air India will still enjoy the signature in-flight services, including Vistara's premium catering services and superior cabin quality. Air India has assured passengers that the merger will not compromise the travel experience. Vistara's premium economy class service, which has garnered praise for its comfort and quality, will continue under Air India, and premium economy passengers will be offered seats on Air India flights operated by Vistara's crew and aircraft.

Vistara's Last Flight

Vistara's final flight will take place on November 11, 2024. The airline's last domestic flight, UK986, will depart from Mumbai to Delhi, while its final international journey, UK115, will fly from New Delhi to Singapore. These flights will mark the end of a brand that has earned accolades for its food, service, and overall flying experience.

In the months following the merger, Air India will serve around 1,15,000 passengers who had booked flights with Vistara. In addition, the loyalty transition will continue, with over 4.5 million Club Vistara members being migrated to Air India's Flying Returns program, which will be rebranded as the 'Maharaja Club.'

With Vistara merging into Air India, the Indian aviation landscape is undergoing a significant transformation. The country's once crowded skies, which had multiple full-service carriers, will now have just one FSC - Air India. The merger reflects broader trends in the aviation industry, where cost-effective operations are becoming increasingly important in the face of rising air traffic.