Monday, January 8, 2024
Vistara CEO Vinod Kannan announces plans for a merger with Air India, expected to complete by mid-2025, with regulatory approvals underway.
Vistara’s CEO, Vinod Kannan, announced on Monday that the airline anticipates obtaining necessary approvals for its merger with Air India in early 2024. Following this, the plan is to unify their operations by the middle of 2025. The merger process requires consent from multiple regulatory bodies, including the Competition Commission of India, the National Law Company Tribunal, the Ministry of Civil Aviation, and the Department of Industry and Internal Trade.
Mr. Kannan emphasized the complexity of merging the flight operations of Vistara, which currently has a fleet of 67 aircraft, with those of Air India. He pointed out that the transition would be gradual due to the sizable fleet involved. Vistara plans to expand its fleet by adding three more aircraft in 2024, including a Boeing 787 Dreamliner. The airline is focusing on expanding its international routes, with plans to increase flights to Singapore from February and boost the Mumbai to London frequency.
The merger process will also involve integrating various organizational aspects, such as combining pilot and cabin crew teams and addressing employee seniority issues across Tata Group’s airlines. However, decisions regarding network planning and ticket pricing will have to wait until all regulatory approvals are in place to avoid potential anti-competitive issues.
Deepak Rajawat, the Chief Commercial Officer of the airline, reported a significant recovery in corporate travel, surpassing pre-pandemic levels. This resurgence challenges the notion that the pandemic would lead to a permanent shift towards remote work and lessen business travel. This trend has also increased the demand for business-class and premium-economy seats, with Rajawat noting a substantial rise in front-end travel.
Thursday, May 2, 2024
Wednesday, May 1, 2024
Thursday, May 2, 2024
