Air India chief Campbell Wilson on Friday welcomed the Competition Commission’s demand for more information on the airline’s proposed merger with Vistara, saying it is a “normal and important part of the evaluation process”. The Competition Commission of India (CCI) has sought more details regarding the proposed merger, which was announced in November last year and regulatory approval was sought in April this year. Under the competition law, the regulator has the power to conduct a detailed investigation before approving a merger or acquisition if there are concerns about potential anti-competitive practices in the deal.
“You may have read recently that the Competition Commission of India has asked for more information regarding our proposal to merge with Vistara. We welcome this request, which is part of the evaluation process,” Wilson told employees in his weekly message. It’s a normal and important part.” on Friday. While it is headed in the right direction, the CEO and MD also said that Air India continues to make progress on the integration of its low-cost airlines.
Air India Express and AIX Connect (formerly known as AirAsia India) are in the process of merger. Wilson also said that “progress is also being made in planning the eventual end state where the Air India group will have a single, very large full-service carrier and a single (very large) low-cost airline, with aligned practices, Optimized systems and career prospects in the combined entity”.
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Vistara and Air India are two full-service carriers that are part of the Tata group, and Singapore Airlines holds a 49 per cent stake in Vistara. In November 2022, the Tata group announced the merger of Vistara with Air India under a deal in which Singapore Airlines would also acquire a 25.1 percent stake in Air India. The deal will make Air India the country’s largest international carrier and second largest domestic airline.
Meanwhile, Air India is looking at the possibility of introducing premium economy seats on planes that will be delivered in the future. Currently, its ultra-long-haul flights have such seats. “Yesterday, we spent a few hours with Mr. Ratan Tata and our Chairman Mr. Chandrasekaran reviewing possible ‘Premium Cabin’ seat options for our future aircraft.
Getting personal engagement and inputs from two of our most important stakeholders was wonderful and the prospects are truly exciting.” As part of restructuring the airline business, a new organization is also being introduced at Air India.
“The transition from a PSU structure to a private sector model, as well as bringing former and new Air Indians into a common grade and compensation structure and laying the groundwork for possible integration with Vistara, has not been a simple process,” Wilson said. ” Tata Group had taken control of loss-making Air India in January last year.