Vistara merger will bolster Air India's transformation effort: CEO Wilson

Air India chief Campbell Wilson on Tuesday said that Vistara's success will strengthen Air India's transformation programme and also help in quickly attaining the size befitting a global carrier.

After the announcement of the decision to merge Vistara with Air India, Vistara CEO said it will be business as usual for all its stakeholders during the integration process that will take some time.

Subject to regulatory approvals, the merger is expected to be completed by March 2024.

In a statement, Campbell said Vistara has achieved much over the last eight years.

"The skills, people, systems and processes that have driven Vistara's success will complement, strengthen and accelerate Air India's Vihaan.AI transformation programme," the CEO and MD of Air India said.

Further, he said the merger will enable the new Air India to more quickly attain the size, reach and quality befitting of a world class airline proudly representing India around the globe.

Tata group took over the loss-making Air India from the government in January this year. Under the new ownership, efforts are on to bolster the full service carrier.

Vistara is 51 per cent owned by Tata group and the remaining 49 per cent shareholding is with Singapore Airlines (SIA).

In a separate statement, Kannan said that Vistara is a fine manifestation of its parent brands Tata Sons and Singapore Airlines, and "we are delighted that we will continue to be guided by their legacies as we merge with Air India".

"The integration process will take some time, and during this phase it will be business as usual for all our stakeholders including customers. We will continue to share relevant information with all of them, as appropriate," he said.

He also said that there is enormous potential for an airline group with the scale and network of the combined entity. "We look forward to providing more opportunities for our customers, employees, and partners, while putting a spotlight on Indian aviation at the global stage".

A full service carrier, Vistara was the country's second largest domestic carrier with a market share of 9.2 per cent in October. It started flying in January 2015.

Currently, the airline connects 43 domestic and overseas destinations and operates more than 260 flights daily with a fleet of 54 aircraft. It has around 4,700 employees.

At present, four airlines are part of the Tata group. They are Air India, Air India Express, AirAsia India and Vistara. AirAsia India was launched in 2014 while Air India Express began operations back in 2005.