Tata group is discontinuing Vistara brand after its merger with Air India. Air India and Vistara, India’s two (and only) full-service airlines, will merge next year to form a single entity. Both brands are significant in their own right, but one will lose its identity once the merger is completed. And that airline will be Vistara.
Air India’s chief executive officer Campbell Wilson has clarified that the airline will continue to be known as Air India following its merger with Vistara. The reason for this is Air India’s long presence in the international market.
Despite the various hiccups over the past several years, Air India is still a well-known brand globally. Vistara is relatively young and has a bigger presence in India. As such, the carrier will have to give up its identity following the merger. Wilson commented,
“Vistara clearly has a very strong recognition in the Indian market…but if you look outside the Indian market, clearly Air India is much more recognized and has a 90-year history. So, the future full-service carrier will be called Air India, but we would like to retain and celebrate some of the Vistara heritage in that new manifestation.”
Vistara is a collaboration between Tata Group and Singapore Airlines. SIA collaborated with the Tata Group years before the Air India deal to enter India’s promising domestic market, and it now owns 49% of Vistara. The Tata Group announced last year that SIA will hold a 25.1% stake in the merged entity.
Meanwhile, work is already underway to merge the two airlines’ businesses, which is a massive task in and of itself. Senior executives from both airlines have begun the employee integration process with the assistance of the consulting firm Deloitte.
Non-flying staff being considered for leadership roles are being interviewed at various levels. The best fit among senior to mid-level executives will be retained for the position, and other candidates, if available, will be assigned to a different role.
Looking ahead
Air India recently announced the largest commercial aircraft order in aviation history, for 470 Boeing and Airbus planes. Wilson explained that the company will finance the order in three ways: cash flow, equity from parent Tata Group, and sale and leaseback.
This year, Air India will receive six Airbus A350s. These planes were originally intended for Aeroflot, but due to Russian sanctions, that commitment could not be met. In addition, the airline has several more planes on a short-term lease and has already begun hiring pilots and cabin crew to keep up with the future fleet expansion.
