Air India Completes Merger with Vistara, Becomes Unified Full-Service Carrier

On Tuesday, November 12, 2024, Air India officially completed its merger with Vistara, marking a significant step in the airline’s post-privatization transformation. The newly unified entity will now operate over 5,600 weekly flights, connecting more than 90 domestic and international destinations. With a fleet of 208 aircraft, the merger significantly expands Air India’s reach and service capabilities.

Unified Operations and New Flight Codes

Following the merger, all flights will operate under the ‘Air India’ brand, with the airline code ‘AI’. Vistara’s aircraft, however, will continue to use a four-digit flight number starting with the digit “2”. For example, Vistara flight UK 955 will now operate as AI 2955.

Existing members of Vistara’s loyalty program, Club Vistara, have been integrated into Air India’s revamped Flying Returns program, now rebranded as the ‘Maharaja Club’. This integration aims to provide seamless benefits to frequent flyers across the merged airline network.

Singapore Airlines, which previously held a 49% stake in Vistara, has now reduced its share to 25.1% in the newly merged Air India Group. As part of the merger, more than 6,000 Vistara employees have been inducted into the new organization structure, ensuring a smooth transition of operations. Additionally, 270,000 customer bookings and 4.5 million Club Vistara accounts have been migrated to Air India’s newly-designed frequent flyer program.

Air India Group Expands and Consolidates Operations

The merger between Air India and Vistara is part of the larger consolidation of Tata Group’s aviation assets. This follows the merger of budget carriers Air India Express and AIX Connect (formerly Air Asia India) on October 1, 2024. The consolidation of these four Tata-owned airlines into a single group includes one full-service carrier (Air India) and one low-cost carrier, Air India Express.

Together, the group now operates more than 8,300 weekly flights on 312 routes, connecting over 100 destinations worldwide. The group’s fleet includes 300 aircraft, and the airline now serves over 120,000 passengers daily. Additionally, the Air India Group offers extended global connectivity to more than 800 destinations through over 75 codeshare and interline partnerships.

In line with its growth strategy, Air India has announced the purchase of over 500 new aircraft. The airline is also investing in upgrading its fleet, with a $400 million interior retrofit program for legacy planes. Moreover, a new 600,000-square-foot training facility capable of training 2,000 employees daily has been opened. The airline is also working on building a new 12-bay maintenance base, set to be operational by early 2026.

Campbell Wilson, Managing Director and CEO of Air India, called the merger a “significant milestone” in the airline’s post-privatization transformation journey. He emphasized the efforts of the teams across the four airlines, stating, “Over the past two years, teams have worked closely together to ensure that the transition of people, assets, operations, and, most importantly, customers, was as seamless as possible.”

The completion of the Air India-Vistara merger is expected to help the airline group become a major player in the global aviation market, strengthening its position and expanding its network.