- SUMMARY
- Sad news for Indian aviation enthusiasts: Vistara Brand will be no more in the next year.
- Vistara brand will be fully merged into Air India.
- The Air India Express & AirAsia India merger is awaiting a nod from the NCLT.
Vistara, which is currently considered the best premium airline in India will not be called Vistara after 2024. By the end of 2024, the brand name Vistara will be scrapped as the airline will be fully merged into mainline carrier Air India.
On the sidelines of the IATA Annual General Meeting 2024, executives from the Tata Group held a discussion with reporters from Livemint. They shared the latest update regarding the Air India Vistara merger and the Air India Express-AirAsia India merger.
Air India Vistara Merger: What’s The Latest Update?
Firstly, the merger committee has decided to scrap the Vistara brand name. Entering into 2025, there is a possibility that this name will no longer be used. This aligns with the AOC validity of Vistara, which is set to expire in December 2024. Following the liquidation of the Vistara brand, the TATA Group umbrella will have two airlines: Air India and Air India Express.
The airlines within the group have already started preparing for the merger. Both Air India and Air India Express are adjusting their networks accordingly. On routes like Delhi-Dubai and Mumbai-Dubai, Air India is stepping up its presence because of a higher number of corporate travelers. On the other hand, the LCC subsidiary is focusing on domestic routes as well as international connections from Tier-2/3 cities.
NCLT has already reserved its order for the Air India Vistara merger. The airlines are expected to receive the order within the next 30 days. Once the final nod is granted, both will be able to transfer their staff and assets to each other. Upon receiving the NCLT nod, they will also start communicating with the passengers that the Vistara brand is merging with Air India.
After NCLT, the merger will await approval from the Department for Promotion of Industry and Internal Trade (DPIIT). Upon completion of the merger, SIA will be the minority stakeholder in the merged airline. It will hold a 25.1% stake.
What About Air India Express-AirAsia India Merger?
Similar to the FSC merger, the LCC merger between Air India Express and AirAsia India is also waiting for the NCLT approval. Within the next 60 days, this process is expected to be complete. Once the NCLT approves the merger proposal, it will take another 4-5 months to merge the air operator certificates (AOCs) of both airlines.
Post-merger of AOCs, the flights of AirAsia India (current AIX Connect) will be operating using the IX code of Air India Express. Currently, AIX Connect uses I5 as its designation. Both airlines have already merged their boarding passes, airport check-in, and booking portal. Both of them have transited to common social media platforms, a common website, and the same booking portal.
Once the airline receives the nod from NCLT, the fleet of AIX Connect will be shifted to the AOC of Air India Express. Four Airbus A320neos have already been shifted on Air India Express AOC. Out of these, two have been painted in the new AI Express livery.
Vistara and Air India Express recently faced disruptions in their scheduled services because of a revolt from their flying staff. Both airlines are gradually bringing operations back to normal. Network-wise, Vistara will recover by July-August. Currently, it is operating with a minor capacity cut.
Conclusion
Currently, Tata Group has four airlines under its umbrella- Air India, Air India Express, AIX Connect, and Vistara. Soon, the latter two will be liquidated. Both FSC and LCC mergers are awaiting the nods for NCLT. Once the nod is granted, they will be able to transfer the people and assets like aircraft between each other. Vistara brand will cease to exist by the end of 2024.
Do you think the conglomerate is doing wrong by liquidating the Vistara brand? Discuss in the comment section.
With Inputs From Livemint
Featured Image Credits: Vistara via Facebook
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