New Delhi, In a strategic move, Vistara is gearing up for a merger into Air India by mid-2025, as confirmed by Vistara CEO Vinod Kannan. Addressing concerns from the airline’s 6,000 employees and passengers, Kannan assured that the necessary regulatory clearances are expected by mid-2024. However, the operational aspect of the merger, contingent on overall improvements in Air India’s product, may extend until mid-next year.
Kannan emphasized that there will be no job losses at Vistara, but roles within the merged entity could undergo changes. The 67-aircraft-strong Vistara plans to continue its expansion, focusing on international routes from Mumbai. The airline is set to receive three additional planes in the coming months.
While acknowledging employee concerns, Kannan highlighted that the Tatas’ involvement in integrating the four airlines—Air India, Vistara, Air India Express, and AirAsia India—signals a departure from past challenges faced during airline mergers in India.
Regarding passenger reassurance, Kannan confirmed that Vistara planes would operate in the merged airline, and efforts would be made to maintain the same level of service and comfort. Vistara, founded in January 2015, remains cash flow positive and has not required additional funding from stakeholders in recent times.
The merger anticipates obtaining antitrust clearances and approvals from various authorities, including Singapore, by mid-2024. Vistara employees and passengers are being kept informed as the merger progresses, with a focus on a smooth transition for all stakeholders.
