Tata Sons Fast-Tracks Air India and Vistara Integration for Unified Airline Operation
Tata Sons is accelerating the integration of Air India and Vistara to operate as a unified airline by the end of this year, as reported by The Economic Times (ET). According to sources, both airlines have initiated the process of merging their operational manuals and transferring flying crew between the two carriers by reaching out to the Directorate General of Civil Aviation (DGCA).
The conglomerate’s objective behind the merger is to streamline its aviation operations. As part of this initiative, Air India and Vistara will merge to create a comprehensive full-service airline, while AirAsia India and Air India Express will be integrated to establish a single low-cost carrier. A source quoted by ET emphasized the group’s eagerness to complete the merger expeditiously to unlock synergies and enhance operational efficiency.
The exact timeline for integration hinges on obtaining approvals from regulatory authorities. Air India anticipates receiving 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, paving the way for the Tata Group to establish a unified, full-service carrier.
Both Air India and Vistara currently operate flights to similar destinations around similar times, utilizing separate resources at airports, including distinct check-in counters. To facilitate the integration, the airlines must merge their operational manuals, and flying staff from Vistara, such as pilots, will undergo operator conversion courses lasting approximately 40 days.
The integration process will be conducted gradually to avoid disrupting flight operations during the transition. Regarding non-flying staff, Vistara CEO Vinod Kannan mentioned that they can expect clarity regarding their roles by May and June.
In conclusion, Tata Sons’ efforts to expedite the integration of Air India and Vistara underscore its commitment to optimizing operational synergies and enhancing competitiveness in the aviation sector. As the merger progresses, effective coordination between the two airlines and regulatory approvals will be crucial to ensure a seamless transition and the successful establishment of a unified, efficient airline operation.
