218 planes, 15k employees: What does Vistara and Air India merger mean for the Indian sky?
SIA and Tata aim to complete the merger by March 2024. Photo: dailyO
Ever since TATA Sons were handed back the wings of Air India in January 2022, everyone was expecting great things to happen for the airlines. Now, in its newest venture, to make Air India even better, the company has decided to merge with its so called rival, Vistara (since TATA already owns 51% stakes in Vistara).
How exactly is the merger happening?
To put it simply, two companies Vistara and Air India will be merging, and the process will be going as follows:
- First, Air India and Vistara will be merging completely, and as predicted by experts, Air India will keep its name. So soon, you will not see Vistara but you will see a better and improved version of Air India. This is expected to be done by March 2024 (since there is a lot of procedure to go through).
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Singapore Airlines (SIA) and Tata Sons (Tata) have agreed to merge Air India and Vistara, with SIA also investing INR 20,585 million ($$360 million, US$250 million) in Air India as part of the transaction.
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This would give SIA a 25.1% stake in an enlarged Air India group with a significant presence in all key market segments. SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals.
What's next? The main idea of this merger is to make two achieve two things:
- Second largest domestic carrier.
- And might give them an upper hand against their rival Indigo Airlines (55% market share).
Growing bigger and better? Fleet size means the total number of vehicles under common ownership or control even if they are part of different subsidiaries, divisions, or other organisational structures of a company or agency.
Post-merger, this will take the fleet size to 218, putting together Air India's 113 with AirAsia India's 28, Vistara's 53, and Air India Express's 24. (Since Air Asia India and Air India Express are also owned by Air India).
It is also predicted that in total, after the merger, Air India will have almost 15,000 employees under them.
In total, both of the air companies will serve 38 international and 52 domestic spots. Take a look at the networking maps of Vistara and Air India and SIA:
What do companies have to say about the merger?
In an official statement given to dailyO, Vistara's CEO says that the company takes immense pride in embarking on this journey.
He added: "Air India is a legendary brand with a rich legacy that pioneered civil aviation in India. There is enormous potential for an airline group with the scale and network of the combined entity. We look forward to providing more opportunities for our customers, employees, and partners while putting a spotlight on Indian aviation at the global stage. The integration process will take some time, and during this phase, it will be business as usual for all our stakeholders including customers. We will continue to share relevant information with all of them, as appropriate."
Now, the merger is projected to transform Air India into a world-class experience by incorporating Vistara's excellent hospitality and customer service, which customers dislike about Air India. However, these changes will be reflected by 2023.