The merger between Vistara and Air India is likely to be finalized on November 12 as the former will fly for the final flight on November 11. On Friday it was informed that customers will no longer be able to book Vistara flights from September 3, 2024, for travel on or after November 12, 2024.
This development which sets in motion the final stage of the much-anticipated merger process comes following the Indian government’s approval of Singapore Airlines’ (SIA) Rs 2,059-crore investment in the merged airline.
“Air India welcomes the Union Cabinet’s approval for the foreign direct investment by Singapore Airlines in Air India. This is an important milestone that facilitates the merger process between Vistara and Air India, and the broader transformation of the Air India Group,” said an Air India Spokesperson on Friday.
All Vistara flights from September 3 will be booked through the Air India website or app. Following Vistara’s last flight on November 11, Air India will take over all of Vistara’s aircraft and operate under its brand. This would effectively mark an end to the 10-year run of Vistara during which it established itself as a premium full-service carrier.
“As we progress further in our growth journey, we want to emphasize that this merger is about offering them more choice with a larger fleet and a wider network, while elevating the overall travel experience. Vistara and Air India are committed to ensuring that this transition is smooth and hassle-free,” said Vistara’s Chief Executive, Vinod Kannan.
Campbell Wilson, Chief Executive Officer & Managing Director, Air India, said, that cross-functional teams from Air India and Vistara have been working together for many months to make the transition of aircraft, flying crew, ground-based colleagues and, most importantly, our valued customers, into the new Air India as seamless as possible.
“The joint team looks forward to offering our guests an expanded network, additional flight options, an enhanced frequent flyer program and the best of both antecedent airlines…" added Wilson. Vistara’s frequent flyer programme, Club Vistara, will be phased out and merged with Air India’s Flying Returns programme.
The merger was set in motion when Tata Group acquired Air India from the Indian Government in January 2022 and was first announced in November 2022. Once the deal is complete, Singapore Airlines will have a 25.1% stake in Air India. Vistara is a joint venture between Singapore Airlines and Tata Group where they won the airline in 49:51.
The Tata Group believes that the consolidation is a critical part of Air India’s transformation programme and their effort to build a world-class airline from India. The conglomerate had earlier merged its two budget airlines into a single entity.