CCI seeking info on AI-Vistara merger is normal, part of process: Wilson

Air India chairman Campbell Wilson on Friday welcomed the Competition Commission seeking more information on the airline’s proposed merger with Vistara and said it was a “normal and important part of the evaluation process”.

The Competition Commission of India (CCI) has requested more details regarding the proposed merger, which was announced in November last year, and approval from the regulator was sought in April this year.

Under competition law, the regulator has the authority to conduct a detailed investigation before approving a merger or acquisition if there are concerns about potential anti-competitive practices in the deal.

“You may have read recently that the Competition Commission of India requested more information regarding our proposal to merge with Vistara. We welcome this request, and it is a normal and important part of the evaluation process,” Wilson told staff in his weekly letter. Friday.

While this is on track, the CEO and Managing Director also said that Air India continues to make progress in integrating low-cost airlines.

Air India Express and AIX Connect (formerly AirAsia India) are in the process of merging.

Wilson also said that progress is also being made in “planning for an end state where Air India Group has one, very large full-service airline and one (also much larger) low-cost airline, with compatible practices, improved systems and career prospects across the combined entity” .

Vistara and Air India are full-service companies and are part of the Tata Group, and Singapore Airlines owns a 49 percent stake in Vistara.

In November 2022, the Tata Group announced the merger of Vistara with Air India under a deal whereby Singapore Airlines will also acquire a 25.1 per cent stake in Air India.

The deal will make Air India the largest international airline and the second largest domestic carrier in the country.

Meanwhile, Air India is looking into the possibility of introducing premium economy seats in future deliveries. Currently, such seats are on their very long flights.

“Yesterday, we spent a few hours with Mr. Ratan Tata and Chairman Mr. Chandrasekaran to review possible ‘premium cabin’ seating options for our future aircraft.

It’s been great getting the personal involvement and input from two of our most important stakeholders, and the possibilities are really exciting.”

As part of the restructuring of the airline business, a new organization is also being rolled out in Air India.

“Moving from a PSU structure to a private-sector model while simultaneously bringing new and former Indians into a common degree and compensation framework, and preparing the ground for possible integration with Vistara, is not a simple process,” said Wilson.

The Tata Group took control of loss-making Air India in January last year.