Decks cleared for Vistara merger with Air India

Singapore Airlines (SIA) on Friday said it has received the foreign direct investment (FDI) approval from the Indian government for the proposed merger of Vistara with Air India. Starting September 3, 2024, customers will no longer be able to make bookings with Vistara for travel from November 12, 2024, a Vistara spokesperson said.
However, for those booked on Vistara flights from November 12, the flight numbers will change to Air India, even though in nearly all cases the aircraft, schedule and operating crew will be unchanged until early 2025.
“This (the approval) paves the way for us to commence the remaining steps to merge Vistara and Air India,” stated Air India’s chief executive officer Campbell Wilson in an internal note read by HT. The government approval was received on Thursday night.
SIA owns a 49% stake in Vistara and will get a 25.1% stake in the merged entity. The Tatas, who own Air India, will keep the remaining 74.9% stake.
“All Vistara aircraft will be operated by Air India and bookings for the routes operated by these aircraft will be redirected to Air India’s website. Vistara will continue to take bookings and operate flights as usual till November 11, 2024,” the spokesperson said.
Currently, Vistara has a fleet of 70 aircraft and Air India has 140 aircraft in its fleet.
“During this transition period, both Vistara and Air India will ensure necessary support, consistent communication, and convenience to all customers, every step of the way. Customers are advised to read the frequently asked questions (FAQs) on the Vistara website for any action they may need to take for their travel with the airline,” the Vistara spokesperson added.
An Air India spokesperson added, “Air India welcomes the Union Cabinet’s approval for the foreign direct investment by Singapore Airlines in Air India. This is an important milestone that facilitates the merger process between Vistara and Air India, and the broader transformation of the Air India Group.”
With the regulatory approvals now in hand, the movement of aircraft and crew from Vistara’s air operator certificate to Air India’s has been set for November 12, which implies that there will be no changes for bookings and travel between now and November 11, 2024.
“All customers already booked on Vistara flights after November 12 will automatically have their reservations converted to Air India flight numbers; this will occur in phases during September, and customers will be individually informed when this occurs,” Wilson said in the internal email to the Air India employees.
“For our Vistara colleagues, the HR teams are working on the transfer of those who have not already been seconded into Air India. As with those who have already joined, we look forward to welcoming our new Air Indians, helping them feel at home, and to having their assistance in catalysing and accelerating the new Air India.” he added.