Merger with Vistara targeted to be done by December: Air India CEO

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3 min read Last Updated : May 13 2024 | 8:22 PM IST


The integration of approximately 7,000 employees of Vistara will begin in the coming months, with its merger into Air India targeted to be completed by year-end, Air India Chief Executive Officer and Managing Director Campbell Wilson said on Monday.


This indicates that the Tata Group has expedited the merger process of its two full-service carriers, as Vistara CEO Vinod Kannan had previously informed reporters in January that he anticipates an operational merger with Air India by mid-2025.


Both Wilson and Kannan addressed a town hall of employees from both carriers on Monday. According to sources, Wilson stated that 120 pilots have been seconded between the two airlines. He also mentioned that about 60 non-flying staff from Vistara have been seconded to Air India.


During the town hall, the two CEOs mentioned that assessments for 7,000 Vistara employees have already been completed, and their fitment is in advanced stages. These employees will be integrated into Air India in phases starting from June onwards. A small number of Vistara employees will remain there until its air operator certificate (AOC) is surrendered to the Directorate General of Civil Aviation (DGCA).

When Tata Group took control of Air India in January 2022 after privatization, the ratio of employees between Air India and Vistara was 12:5. Wilson mentioned at the town hall that this ratio has been sustained over the last two years. Currently, Air India has about 17,000 employees, while Vistara has approximately 7,000 employees (3,500 non-flying staff and 2,500 flying staff).


The sharing of best practices between the two airlines is already underway, and both carriers are harmonizing their standard operating procedures (SOPs), Wilson mentioned. He said that a facility called ‘myIDTravel’ has already been enabled, allowing employees to book tickets across the two airlines.


Wilson also stated that Air India itself has added 70 aircraft—17 widebodies and 53 narrowbodies—in the last 24 months. “This is equivalent to adding one Vistara into Air India,” he noted.


Sources said Wilson and Kannan did not directly talk about the disruptions that Vistara and Air India Express have been experiencing over the past several weeks, as certain employees are discontented over various issues.


Vistara, a joint venture between Singapore Airlines and Tata Group with a ratio of 51:49, is currently undergoing a merger with Air India to create a unified full-service carrier. Similarly, Air India Express is merging with AIX Connect (formerly AirAsia India) to establish a single low-cost airline subsidiary of Air India.


Over 100 cabin crew members of Air India Express went on sick leave at the last minute between May 7 and May 9, forcing the airline to cancel more than 170 flights during that time period. These cabin crew members have raised concerns regarding the removal of allowances, resulting in effectively reduced salaries, and the perceived disparity in treatment between Air India Express employees and those of AIX Connect.


The turbulence at Air India Express came just a few weeks after Vistara canceled 10 percent of its flights due to sick leave taken by a section of pilots, amidst dissatisfaction with tight duty schedules and new salary packages offered to them as part of the airline’s merger into Air India.

First Published: May 13 2024 | 8:22 PM IST