Mumbai: Tata Group likely to bid adieu to brand Vistara

By the end of 2024, the brand name Vistara will be scrapped as the airline will be fully merged into mainline carrier Air India. File pic

Vistara 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 Tata Group 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 Air Operator Certificate (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," informed an executive of Tata Group in a media statement.

"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 travellers. On the other hand, the Low Cost Carrier (LCC) subsidiary is focusing on domestic routes as well as international connections from Tier-2/3 cities," the executive stated.

"National Company Law Tribunal (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 also start communicating with the passengers that the Vistara brand is merging with Air India," said sources from the airline familiar with the matter.

"After NCLT, the merger will await approval from the Department for Promotion of Industry and Internal Trade (DPIIT). Upon completion of the merger, Singapore Airlines (SIA) will be the minority stakeholder in the merged airline. It will hold approximately 25 per cent stake."

"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," said industry sources familiar with the matter.

What about the Air India Express-AirAsia India merger?

"Similar to the Full Service Carrier (FSC) merger, the Low Cost Carrier (LCC) merger between Air India Express and AirAsia India is also waiting for the NCLT approval. This process is expected to be completed within the next 60 days. Once the NCLT approves the merger proposal, it will take another 4-5 months to merge the air operator certificates (AOCs) of both airlines," said another source from the airlines who is in the know on matters related to merger.

"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." the source said.

"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 to Air India Express AOC. Out of these, two have been painted in the new Al Express livery," the executive stated.

60days
Expected time to get NCLT approval for AIX-AirAsia India merger