Air India and Vistara merger completed, marking major milestone in Indian aviation sector

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The Air India Group has successfully completed the operational integration and legal merger of Air India and Vistara, creating a major full-service carrier and a significant milestone in the airline's post-privatisation transformation. This merger follows the earlier consolidation of the Group's low-cost carriers, Air India Express and AIX Connect (formerly Air Asia India), which took place on October 1.

The merger is a key component of the Air India Group's ongoing transformation programme, 'Vihaan.AI', aimed at establishing the airline as a world-class global aviation player with a distinctly Indian identity. The Group now operates a unified network with over 8,300 weekly flights across 312 routes, connecting more than 100 domestic and international destinations. The merged fleet includes 300 aircraft.

As part of the merger, Air India, the newly unified full-service carrier, will operate more than 5,600 weekly flights across 90 destinations with a fleet of 208 aircraft.

The airline expects to carry more than 1.2 lakh passengers every day and offers extended global connectivity through codeshare and interline agreements with more than 75 partners, covering over 800 destinations worldwide.

The integration process began more than two years ago and has involved the induction of more than 6,000 former Vistara staff into the new organisation structure. The process also included harmonising operational procedures across all four airlines in the Group, aligning more than 140 IT systems, and consolidating vendor contracts. Additionally, more than 2.7 lakh customer bookings were migrated, and 45 lakh frequent flyer accounts from Vistara's Club Vistara were transferred to Air India's revamped loyalty programme, 'Maharaja Club'.

Given the complexity of the dual mergers and the Group's expansive transformation, the Directorate General of Civil Aviation (DGCA) has been closely involved in the process, along with the Ministry of Civil Aviation (MoCA), the Bureau of Civil Aviation Security (BCAS), and various international regulators.

Apart from the airline merger, the Vihaan.AI programme has led to several other major developments, including the procurement of more than 500 new aircraft, with deliveries already underway. Air India has also launched a USD 400 million interior retrofit programme for its legacy aircraft, and a new 6 lakh square foot training facility, capable of training 2,000 employees every day, has been opened. Ground has also been broken for a 12-bay maintenance base, set to begin operations in early 2026. More than 9,000 new employees have joined the company.

Campbell Wilson, Managing Director and Chief Executive Officer (CEO) of Air India, said, "The merger of Air India and Vistara completes the consolidation and restructuring phase of the Air India Group's post-privatisation transformation journey, marking a significant milestone. I would like to thank our staff, stakeholders, and regulatory bodies for their support throughout this process. This merger is not just about combining assets; it is about laying the foundation for a world-class global airline with an Indian heart."

Following the merger, Vistara aircraft will now operate under the Air India brand, with Vistara's crew and service offering continuing. Vistara's flight numbers, which previously began with 'UK', will now begin with the Air India code 'AI': for instance, UK 955 will become AI 2955.

Additionally, members of Vistara's frequent flyer programme, Club Vistara, will have their accounts transferred to Air India's 'Flying Returns' programme, which has been rebranded as 'Maharaja Club'.

Also, following the merger agreement, Singapore Airlines, which previously held a 49% stake in Vistara, has now become a 25.1% shareholder in the newly consolidated Air India Group.