CCI seeking info on AI-Vistara merger is normal, part of process: Wilson

Air India chief Campbell Wilson on Friday welcomed the Competition Commission seeking more information on the airline's proposed merger with Vistara and said it is a "normal and important part of the evaluation process".

The Competition Commission of India (CCI) has asked for more details with respect to the proposed merger, which was announced in November last year, and approval from the regulator was sought in April this year.

Under the competition law, the regulator has the power to carry out a detailed probe before approving a merger or acquisition in case there are concerns about possible anti-competitive practices in the deal.

"You may have recently read that the Competition Commission of India has asked for more information regarding our proposal to merge with Vistara. We welcome this request, which is a normal and important part of the evaluation process," Wilson told employees in his weekly message on Friday.

While that runs its proper course, the Chief Executive Officer and Managing Director also said Air India continues to make progress on the integration of its low-cost airlines.

Air India Express and AIX Connect (earlier known as AirAsia India) are in the process of being merged.

Wilson also said that progress is also being made in "planning for an eventual end state where the Air India group has a single, much large full-service carriers and a single (also much larger) low-cost airline, with aligned practices, optimised systems and career prospects across the combined entity".

Vistara and Air India are the two full-service carriers that are part of the Tata Group, and Singapore Airlines holds a 49 per cent stake in Vistara.

In November 2022, Tata Group announced the merger of Vistara with Air India under a deal wherein Singapore Airlines will also acquire a 25.1 per cent stake in Air India.

The deal will make Air India the country's largest international carrier and second-largest domestic airline.

Meanwhile, Air India is looking at the possibility of introducing premium economy seats in aircraft that will be delivered in the future. Currently, such seats are there in its ultra-long-haul flights.

"Yesterday, we spent a few hours with Mr Ratan Tata and our Chairman Mr Chandrasekaran reviewing possible 'premium cabin' seat options for our future aircraft.

It was wonderful to have the personal engagement and input from two of our most important stakeholders and possibilities are truly exciting," he said.

As part of restructuring the airline business, a new organisation is also being rolled out at Air India.

"Transitioning from a PSU structure to a private sector model whilst at the same time bringing erstwhile and new Air Indians into a common grade and compensation framework, and preparing the ground for potential integration with Vistara, is not simple process," Wilson said.

Tata Group took control of loss-making Air India in January last year.