After months of speculation, it has been announced that two of India’s largest full-service carriers, Air India and Vistara, will merge to form a single airline. It’s expected that the process will be complete by March 2024.
Air India and Vistara to Become One
As two of India’s largest full-service airlines, a merger between Air India and Vistara is sure to shake things up in the subcontinent’s aviation landscape. This announcement comes as the latest in a series of major developments in the recent past.
Earlier this year, Mumbai-based Tata Sons completed its purchase of Air India from the Government of India. At the time, Tata Sons announced its intentions to turn Air India into a world-class airline, which would be a change from its current lacklustre reputation amongst Star Alliance carriers.
Vistara, one of India’s newest airlines, debuted to much fanfare in 2015 as a joint venture between Tata Sons and Singapore Airlines. The airline has earned itself a strong place in the domestic and international markets as a customer- and product-focused airline, perhaps due to some influence from its Singapore Airlines ownership.
Since Tata Sons already was a significant or complete stakeholder in both airlines, it comes as no surprise that the official merger of the two has finally been announced. Vistara and Air India already compete on many domestic routes, and by combining forces, the merged airline will become an even stronger presence in India and abroad.
Singapore Airlines is going to assume a 25.1% stake in the unified airline, which is expected to continue to operate under Air India’s moniker. Upon Vistara’s launch, Singapore Airlines had a 49% share, and it’s a good sign that one of the world’s best airlines will continue to be invested in the Indian market going forward.
The merger of Air India and Vistara is sure to be mutually beneficial, as Air India stands to gain from Vistara’s much more competitive hard and soft products, while Vistara stands to benefit from Air India’s slots and air traffic rights at international destinations.
As part of this deal, the two airlines’ low-cost subsidiaries, AirAsia India and Air India Express, are also likely to merge.
What Does the Future Hold for Air India?
Once the merger takes place, the combined airline is set to be a stronger competitor to IndiGo, India’s…
Click Here to Read the Full Original Article at Prince of Travel…