Merger with Vistara may be completed by December, says Air India CEO

This report is updated

The integration of approximately 7,000 employees of Vistara will begin in June, with its merger into Air India targeted to be completed by this year’s end, said Campbell Wilson, Air India chief executive officer and managing director, on Monday.

This suggests that the Tata group has expedited the merger process of its two full-service carriers. Vinod Kannan, Vistara's CEO, had previously informed reporters in January that he anticipates an operational merger with Air India by mid-2025. Click here to follow our WhatsApp channel

At a town hall meeting on Monday, both Wilson and Kannan addressed employees from both carriers. According to sources, Wilson stated that 120 pilots have been seconded between the two airlines, and about 60 non-flying staff from Vistara have been seconded to Air India.

The two CEOs also mentioned that assessments for 7,000 Vistara employees have already been completed, and their fitment is in advanced stages. These employees will be integrated into Air India in phases starting from June onwards.

A small number of Vistara employees will remain until its air operator certificate (AOC) is surrendered to the Directorate General of Civil Aviation (DGCA).

ALSO READ: Air India's international cargo business takes wings, not so for IndiGo When the Tata group took control of Air India in January 2022, the ratio of employees between Air India and Vistara was 12:5. Wilson noted at the town hall that this ratio has been sustained over the past two years. Currently, Air India has around 17,000 employees, while Vistara has approximately 7,000 employees (3,500 non-flying staffers and 2,500 flying staffers).

The sharing of best practices between the two airlines is already underway, and both carriers are harmonising their standard operating procedures (SOPs), Wilson mentioned. He said that a facility called ‘myIDTravel’ has already been enabled, allowing employees to book tickets across the two airlines.

Wilson also stated that Air India itself has added 70 aircraft — 17 widebodies and 53 narrowbodies — in the past 24 months. “This is equivalent to adding one Vistara into Air India,” he noted.

The sources said Wilson and Kannan did not directly address the disruptions that Vistara and Air India Express have been experiencing over the past several weeks, as certain employees are discontented over various issues.

Vistara, a joint venture between the Tata group and Singapore Airlines with a ratio of 51:49, is currently undergoing a merger with Air India to create a unified full-service carrier. Similarly, Air India Express is merging with AIX Connect (formerly AirAsia India) to establish a single low-cost airline subsidiary of Air India.

Over 100 cabin crew members of Air India Express went on sick leave at the last minute between May 7 and May 9, forcing the airline to cancel more than 170 flights during that period. These cabin crew members have raised concerns regarding the removal of allowances, resulting in effectively reduced salaries, and the perceived disparity in treatment between Air India Express employees and those of AIX Connect.

The turbulence at Air India Express came just a few weeks after Vistara cancelled 10 per cent of its flights due to sick leave taken by a section of pilots, amid dissatisfaction over tight duty schedules and new salary packages offered to them as part of the airline’s merger into Air India.