Vistara merger with Air India

Vistara to Cease Operations on November 11 as Merger with Air India Nears Completion

As part of the ongoing merger between Vistara and Air India, Vistara will operate its last flight on November 11, 2024. After this date, all Vistara aircraft will be integrated into Air India’s operations, and bookings for these routes will be managed through Air India’s platform.

1. End of Vistara Operations:

1. • Final Flight Date: Vistara will cease operations on November 11, 2024, marking the end of its decade-long journey in the Indian aviation market.
   • Booking Restrictions: Starting from September 3, 2024, customers will no longer be able to make bookings with Vistara for travel on or after November 12, 2024. Until November 11, Vistara will continue to operate flights as usual, with bookings available for these dates.

2. Transition to Air India:

1. • Unified Operations: Post-November 11, all Vistara aircraft will be operated by Air India, and passengers looking to book flights previously operated by Vistara will be redirected to Air India’s website. This transition is part of the broader merger process aimed at unifying operations under the Air India brand.
   • Customer Experience: Vistara’s CEO, Vinod Kannan, emphasized that the merger aims to offer customers more choices through a larger fleet and wider network, while enhancing the overall travel experience. Both airlines are committed to ensuring a smooth transition for all passengers.

3. Merger Details:

1. • Leadership Comments: Campbell Wilson, CEO & Managing Director of Air India, highlighted that cross-functional teams from both airlines have been collaborating for months to ensure a seamless transition for aircraft, crew, ground staff, and customers. The unified airline will offer an expanded network, additional flight options, and an enhanced frequent flyer program.
   • Singapore Airlines’ Role: Singapore Airlines, which owns a 49% stake in Vistara, has received approval from the Indian government for foreign direct investment, a crucial step in the merger process. The airline will hold a 25.1% stake in the combined Air India group in exchange for a $250 million investment, with plans to invest up to $675.42 million after the merger.

4. Regulatory and Strategic Developments:

1. • Regulatory Approvals: The merger, initially announced in November 2022, has received clearance from both Indian and Singaporean antitrust regulators. The merger, originally expected to be completed by March 2024, is now projected to finalize by the end of 2024, with discussions ongoing to extend the stop date to October 31, 2024.
   • Strategic Objectives: The merger aims to create a dominant full-service airline in both domestic and international markets, leveraging the strengths of both Vistara and Air India.

5. Customer Communication:

1. • Updates and Information: Vistara and Air India will continue to provide regular updates to customers via their websites, social media channels, and email. This includes information on web check-in, lounge access, ancillary services, and other key touchpoints to ensure a seamless transition for all passengers.

     

Advantages of the Merger

• Expanded Network: The unified Air India will offer an expanded network and additional flight options, providing greater convenience and flexibility for passengers.
• Enhanced Customer Experience: The merger is designed to elevate the overall travel experience with an enhanced frequent flyer program and improved service offerings.

Disadvantages of the Merger

• Operational Challenges: The merger involves complex operational integration, which may lead to initial disruptions or challenges in maintaining service levels.
• Customer Uncertainty: Existing Vistara customers may face uncertainty or confusion during the transition period, particularly regarding bookings and loyalty programs.

Conclusion

The merger of Vistara with Air India marks a significant milestone in the Indian aviation industry, aiming to create a leading full-service airline. While Vistara will operate its final flight on November 11, 2024, the unified operations under Air India promise to offer enhanced services and a broader network. However, the transition will require careful management to ensure a smooth experience for customers.

FAQs

1. When will Vistara operate its last flight?

1. • Vistara will operate its last flight on November 11, 2024.

2. Can I book a Vistara flight for travel after November 11, 2024?

1. • No, bookings for Vistara flights after November 11, 2024, will not be available. Customers will need to book through Air India for those dates.

3. What will happen to Vistara aircraft after the merger?

1. • After November 11, 2024, all Vistara aircraft will be operated by Air India.

4. Will there be any changes to the frequent flyer program?

1. • Yes, the unified Air India will offer an enhanced frequent flyer program, combining the best features of both airlines’ programs.

5. What role does Singapore Airlines play in the merger?

1. • Singapore Airlines, which owns a 49% stake in Vistara, will hold a 25.1% stake in the combined Air India group after the merger, following a significant investment.

Vistara merger with Air India

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