In a major development, Air India chief Campbell Wilson said that there will be only one full-service carrier after the completion of the Air India-Vistara merger. The full-service carrier will be known as Air India after the Air India-Vistara merger, as the group works on becoming a significant international aviation player. As reported by PTI, CEO Campbell Wilson said that Air India is more recognized outside the country and as a result, the full-service carrier will be known as Air India. However, Wilson stressed that efforts would be made to retain some of “the Vistara heritage in that new expression”.
The Tata group bought Air India from the government and since taking over the loss-making airline in January last year, the group has been working on turning around the airline. Tata announced that Vistara would be merged with Air India, which was started as a JV between the Tata group, with 51% equity, and Singapore International Airlines, with 49% equity. Post merger, Singapore Airlines will hold 25.1% equity in Air India.
On the other hand, AIX Connect, formerly known as AirAsia India, is integrating with Air India Express. “The intention is to have a full service airline and a low cost airline in the group. The full service airline will be a mix of Air India and Vistara,” Wilson said.
“Vistara has a very strong presence in the Indian market, but if you look outside the Indian market, clearly Air India is more recognized and has a history of 90 years… called Air India the full-service carrier of the future.” But we want to retain and celebrate some of the Vistara heritage in that new expression,” Wilson said.
Once the deal is completed, Air India will become the country’s largest international carrier and second largest domestic carrier. The deal is expected to be completed by March 2024, subject to regulatory approvals.