Vistara will merge with Air India on November 12 marking an end to its near decade long journey.
The merger date was announced on Friday after Centre cleared Singapore Airlines' (SIA) ₹2058 crore investment in Air India group.
Starting September 3, customers will, progressively, no longer be able to make bookings with Vistara for travel on or after November 12. Vistara will continue to take bookings and operate flights, as usual till November 11, the airlines announced today. However schedules, aircraft and crewing of Vistara flights will largely be maintained till early 2025.
While Vistara introduced many firsts in India like premium economy cabin, wi-fi service and Starbucks coffee on board it didn't attain scale and suffered losses since inception.
In November 2022, Tata Sons and Singapore Airlines announced integration of Vistara with Air India in November 2022 to drive synergies and grab share in fast growing Indian market. SIA will hold 25.1 per cent stake in Air India and the investment is a part of its multi-hub strategy.
Air India group also includes its no frills brand Air India Express and it will continue operate separately.
Post merger Air India group will have a fleet of 291 aircraft ( Air India, AI Express and Vistara) and serve with 101 domestic and international destinations with over 8,000 weekly flights. Currently, the group carriers fly 1.7 lakh passengers daily and employ 32,000 persons.
However the integration has also resulted in lay offs and Air India is likely to let go of around 600-700 of its staffers.
“Cross-functional teams from Air India and Vistara have been working together for many months to make the transition of aircraft, flying crew, ground-based colleagues and, most importantly, our valued customers, into the new Air India as seamless as possible.”
“The joint team looks forward to offering our guests an expanded network, additional flight options, an enhanced frequent flyer program and the best of both antecedent airlines,’” Air India’s managing director and CEO Campbell Wilson said in a statement.
In a staff email Vistara CEO Vinod Kannan said harmonisation of staff practices and policies for various verticals is underway.
“ This is beginning of an exciting new chapter in our growth story that presents numerous opportunities for everyone. Together we’re laying foundation of an integrated entity uniquely positioned to power through the global aviation industry,’” Kannan said