Air India and Vistara crew merger prep in process, confirms Vistara CEO

Vistara CEO Vinod Kannan confirmed on July 17 that the airline is on track with the merger with Air India and that it is also in the process of integrating its staff with that of the formerly national carrier. Tata Group had announced in November 2022 that it is merging its two full-service carriers Vistara and Air India to make a bigger airline under the Air India banner to take on rivals. 

Earlier, the CCI had raised concerns over the merger dominating the skies in India and killing competition. Kannan said that Vistara will respond to CCI's concerns by the month's end. 

While Air India is wholly owned by the Tata Group, Vistara is a joint venture between Tata Group and Singapore Airlines. Singapore Airlines will own 25.1 percent of Air India after the merger. 

Tata Group now owns four airlines - Air India, Air India Express, AirAsia and Vistara. 

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So, what's happening with the merger? 

• The Economic Times reported quoting Kannan said that while job cuts are unlikely, the merging staff may not get the same role or position in Air India.
• The first round of integrations will reportedly take place between old and new Air India employees. Then, integration with Vistara and AirAsia India will start. 
• Vistara CEO expects to get the approvals for the merger by April 2024. The actual process will begin much later. 
• Vistara has also set up a team to plan out the "end structure" of the integrated Air India. Discussions with pilots and cabin crew are also underway. 
• In total, Air India is expected to have 15,000 employees after the merger. 

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• Vistara will have a fleet of 70 aircraft by the time the merger is completed. It also plans to expand routes to Dubai, Bahrain, and Bali during this time. 
• On the other hand, Air India recently signed deals with Boeing and Airbus for 470 jets. 

Tata Group took over the debt-ridden Air India from the government in 2021. Since then, it has been on the ambitious journey to modernise its fleet, operational systems, and revenue management. Air India under Tata Group wants to expand not only in the domestic skies but also internationally. 

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