The Tata Group has announced that the Vistara brand will be retired by the end of 2024, with the airline being fully merged into Air India. This decision was revealed at the IATA Annual General Meeting 2024, where Tata executives provided updates on the Air India-Vistara and Air India Express-AirAsia India mergers.
“The merger committee has decided to scrap the Vistara brand name. Entering into 2025, this name will no longer be used, aligning with the expiration of Vistara's Air Operator Certificate (AOC) in December 2024. Post-liquidation, Tata Group will operate only Air India and Air India Express,” stated a Tata executive.
Preparations for the mergers are underway, with Air India and Air India Express adjusting their networks. Air India is increasing its presence on key routes like Delhi-Dubai and Mumbai-Dubai, targeting corporate travellers, while Air India Express focuses on domestic routes and international connections from Tier-2/3 cities.
The National Company Law Tribunal (NCLT) has reserved its order on the Air India-Vistara merger, with a decision expected within 30 days. Once approved, both airlines will transfer staff and assets and start informing passengers about the Vistara brand's integration into Air India. The merger also awaits approval from the Department for Promotion of Industry and Internal Trade (DPIIT), after which Singapore Airlines (SIA) will hold a 25% stake in the merged entity.
Vistara and Air India Express recently experienced operational disruptions due to staff revolts but are working towards normalisation, with Vistara expected to recover by July-August.
The Low-Cost Carrier (LCC) merger between Air India Express and AirAsia India is also pending NCLT approval, expected within 60 days. Following approval, merging the airlines' Air Operator Certificates (AOCs) will take 4-5 months. Preparations include merging boarding passes, airport check-ins, and booking portals. Four Airbus A320neos have already transitioned to Air India Express's AOC, with two painted in the new livery.
With these mergers, the Tata Group aims to streamline operations and strengthen its position in the aviation industry.
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