Vistara Staff to Receive Role Clarity by May or June, NCLT Merger Approval Soon

Vistara, the TATA-SIA Joint Venture recently endured a lot of cancellations after a large segment of pilots reported sick in protest against the new payment structure introduced by the airline. Vistara Chief Executive Officer Vinod Kannan, in an international communication with employees, said that the worst is now behind the airline. He also shared the updates regarding the airline merger with Air India and the roles of Vistara staff post-merger.

Aft Merger: Vistara Staff to Get Role Clarity

CEO Vinod Kannan said that the airline has started the movement of corporate staff in large numbers. Once the airline receives the merger approval from the National Company Appellate Tribunal (NCLT), it will start the process the transferring the airline’s systems, data, and customer communication department. This will be done in a phased manner.

TATA Group has earlier assigned a group of individuals dedicated to the merger process. This team can be termed a Cross-Functional Team. For ensuring a seamless transfer, the high executive leadership of Vistara and the cross-functional team have intensified the frequency of meetings.

Add to this, Vistara has hired an independent consultant. This firm will help the airline to draw the organizational chart of the merger and map the airline’s staff accordingly. This chart is expected to be ready before the end of April. That said, the airline staff can expect their role clarity in the merged entity by May or June month.

Merger Townhall Meetings with Vistara Staff

Between any merger, the employees play an important role. Indian aviation history has not forgotten the merger between Indian Airlines and Air India, which pushed the services of Air India back by almost a decade. Secondly, the employee cultures of Air India and Vistara have been historically different. Merging this culture may prove to be the toughest job for both airlines.

To enhance its touch with employees, Vistara is planning to organize additional town halls to showcase the principles and processes behind the final merger airline.

The pilots of Vistara recently went on a non-called strike, when they reported sick in mass numbers. Within a month’s duration, the airline had to cancel flights in the upper three digits. According to the pilots, the airline management has forced them to sign the new contract. HR department warned them that if they do not sign the contract, they will not be considered during the integration process of Air India and Vistara.

To address the concerns of these pilots, the airline has planned to set up more town halls. Here, the airline will discuss the integrated career upgrade list. The airline has received feedback from the pilots. It admitted that the rosters were stretched too much, resulting in pilots reporting sick in mass numbers. It is working on the feedback and concerns.

Final Merger Approval from NCLT Soon

On March 5, the Competition and Consumer Commission of Singapore (CCCS) granted approval to Air India and Vistara for their merger. This was the last remaining competition approval for the airline. The Competition Commission of India (CCI) had already approved the airline merger last year. Now, the airline is awaiting a merger nod from the National Company Appellate Tribunal (NCLT).

According to CEO Vinod Kannan, the airline is in the advanced stages of receiving this approval. Soon after receiving this approval, the airline will enter the last phases of the legal merger. According to past statements by Air India and Vistara executives, the operational merger between both airlines can be delayed by 2025.

The CCCS flagged some competition concerns in the airline merger. It had asked all the related airlines – Air India, Vistara, Singapore International Airlines, and Scoot to maintain the minimum capacity on four routes. These four routes originate from Singapore and end in Delhi, Mumbai, Chennai, and Trichy. The airlines have been asked to shift to their pre-COVID frequency on these routes.

What do you think about the merger between Air India and Vistara? Discuss in the comments section.