Air India-Vistara Merger: Tata Sons Accelerates Integration Process, Awaits Approval: Report

Air India-Vistara Merger: This will combine the two airlines into a full-service airline, while AirAsia India and Air India Express will merge to form a single low-cost carrier

Air India-Vistara Merger: In September 2023, the CCI approved the merger, paving the way for Tata Group to create a single, full-service carrier.

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Air India-Vistara Merger: Tata Sons is pushing forward with plans to integrate Air India and Vistara, aiming to unify the two airlines by the end of 2024, according to a report by The Economic Times. The company has reportedly initiated the process with the Directorate General of Civil Aviation (DGCA) to merge the operational manuals of both airlines and begin transferring flying crew between the two carriers. This move is part of Tata Sons' strategy to streamline its aviation operations.

The merger will combine Air India and Vistara into a full-service airline, while AirAsia India and Air India Express will merge to form a single low-cost carrier.

A source quoted in the ET report said, "The group is eager to complete the merger as soon as possible as it will unlock synergies and provide multiple benefits for more efficient operations." The source also mentioned that the exact timeline for integration depends on how quickly the company receives approvals from regulatory authorities.

The National Company Law Tribunal (NCLT) is expected to approve the merger next week, allowing for the integration of the airlines' networks, human resources, and fleet deployments. In September 2023, the Competition Commission of India (CCI) approved the merger, paving the way for Tata Group to create a single, full-service carrier.

The ET report noted that both Air India and Vistara operate flights to similar destinations at comparable times, utilising separate resources at airports, including different check-in counters. Integrating the two airlines' distinct operational manuals will require time, with operator conversion courses for Vistara pilots expected to last around 40 days.

To ensure a smooth transition, the process will be gradual to avoid grounding flights. Vistara CEO Vinod Kannan said non-flying staff could receive clarity regarding their roles by May and June.