Air India-Vistara merger: Tata Sons moves up deadline to year-end

Air India and Vistara have reached out to the Directorate General of Civil Aviation (DGCA) and initiated the process of merging their operational manuals

Tata Sons is expediting the integration of Air India and Vistara to function as a unified airline by the end of this year, according to a report in The Economic Times (ET).

Sources said both airlines have reached out to the Directorate General of Civil Aviation (DGCA) and initiated the process of merging their operational manuals, as well as transferring flying crew between the two carriers.

The conglomerate is undertaking the merger to streamline its aviation operations. As part of that, Air India and Vistara will combine to form a comprehensive full-service airline, while AirAsia India and Air India Express are being integrated to establish a single low-cost carrier.

The ET quoted a source saying, "The group is eager to complete the merger as soon as possible as it will unlock synergies and give multiple benefits in running more efficient operations. There are no ifs and buts..."

The source further stated that the exact schedule for integration depends on how soon the company will get the approvals from regulatory authorities.

Air India expects to receive approval for the merger from the National Company Law Tribunal (NCLT) by next week. The NCLT's Chandigarh bench has reserved its decision on the matter. In September 2023, the Competition Commission of India (CCI) granted approval for the merger, enabling the Tata Group to establish a single, full-service carrier, the ET reported.

An approval from the NCLT will enable both airlines to commence the integration of their networks, human resources, and fleet deployments.

The source said that both Air India and Vistara operate flights to identical destinations around similar times, utilising separate resources at airports, such as distinct check-in counters.

Sources said that the two airlines possess distinct manuals that necessitate merging, and flying staff from Vistara, such as pilots, will require operator conversion courses lasting approximately 40 days.

The ET report said that the process will be done gradually, as the airlines aim to avoid grounding flights during the transition. Regarding non-flying staff, Vistara CEO Vinod Kannan mentioned that they can expect clarity regarding their roles by May and June.