IndiGo on Monday bid a heartfelt farewell to rival Vistara as the airline took its final flight before merging with Air India. In a symbolic gesture, IndiGo acknowledged Vistara as an “unforgettable legacy” on social media, emphasising respect despite their past rivalry. As a result of this merger, Air India is set to become a formidable competitor to IndiGo, the budget carrier currently dominating the Indian market.

”As an unforgettable legacy takes its final flight, a new journey on the horizon awaits. Goodbye, @airvistara. Here’s #ToLimitlessPossibilities ahead,” IndiGo wrote on X, along with a video of its final flight.

See the tweet here:

As an unforgettable legacy takes its final flight, a new journey on the horizon awaits. Goodbye, @airvistara. Here’s #ToLimitlessPossibilities ahead. #goIndiGo

Video credits @UtkarshThakkarpic.twitter.com/QAOlNzX5xm

— IndiGo (@IndiGo6E) November 11, 2024

The official X handle of Vistara Airlines reacted to the tweet and responded by saying, ”Onward and upward!  Here’s to the future and all the exciting possibilities it holds!”

Several passengers and aviation enthusiasts also reminisced about Vistara’s premium service and significant contributions to Indian aviation. Many shared their favourite memories with the airline and recalled how it felt travelling on its fleet. 

Vistara was launched in 2015 as a joint venture between Tata Sons (51%) and Singapore Airlines (49%). This strategic partnership was made possible by the Indian government’s decision, under the UPA administration, to allow foreign airlines to acquire up to 49% stake in domestic airlines.

The merger of Vistara with Air India, part of Tata Group’s strategy to streamline its aviation assets, marks the end of Vistara’s journey, established in partnership with Singapore Airlines.  Going forward, Vistara’s routes and fleet will be incorporated into the Air India brand, with Singapore Airlines holding a 25.1% stake in the merged entity, India’s largest international carrier.​

Vistara was merged with Air India on Monday night, and from Tuesday onwards, the Vistara flight code will change from ‘UK’ to ‘AI2XXX’. The in-flight experience on Vistara’s fleet will remain unchanged, but customers will now have access to Air India’s expanded network and services.

With this merger, the number of full-service carriers has dropped to one from five in the past 17 years. Over the past years, airlines such as Kingfisher, Air Sahara, rebranded as JetLite and Jet Airways have been grounded due to financial trouble and various other reasons.

 

The integrated entity of Air India and Vistara is scheduled to operate its first flight from Doha to Mumbai at 12.15 am on Tuesday, according to a source.

Vistara will be merged with Air India on Monday night, and from Tuesday onwards, the Vistara flight code will change from ‘UK’ to ‘AI2XXX’.

On the international segment, the first flight of the integrated entity will be AI2286 from Doha to Mumbai, scheduled to take off at 12.15 am on Tuesday. On the domestic route, the first scheduled flight will be AI2984 from Mumbai to Delhi at 1.20 am, the source told PTI.

Both are scheduled Vistara flights that will be operated by Air India post-merger.

Meanwhile, the last flight of Vistara is scheduled to be UK115 from Delhi to Singapore, which will depart at 11.45 pm on Monday.

Both, Air India and Vistara, are part of the Tata Group. Vistara is a joint venture between Tatas and Singapore Airlines.

During the day, Vistara pilots made in-flight announcements about the merger and said passengers could continue to enjoy the familiar Vistara experience on the Air India aircraft.

Meanwhile, sharing a short video of a Vistara aircraft taxiing for take-off on X, the country’s largest IndiGo bid goodbye to the airline.

“As an unforgettable legacy takes its final flight, a new journey on the horizon awaits. Goodbye, @airvistara. Here’s #ToLimitlessPossibilities ahead. #goIndiGo,” the airline said in a post. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

The merger of Vistara with Air India will mark a major consolidation in the fast-growing Indian aviation space. File
| Photo Credit: Reuters

Singapore Airlines will make an additional investment of ₹3,194.5 crore in Tata Group-owned Air India post-merger of Vistara in November.

The merger, announced on November 29, 2022, and set to be completed on November 11, 2024, will result in Singapore Airlines having a 25.1% stake in the enlarged Air India.

Also read | Air India-Vistara merger: Assessment complete; systems integration in progress, says official

Full-service carrier Vistara, which started flying on January 9, 2015, is a joint venture between Tatas and Singapore Airlines, where the latter holds a 49% shareholding.

Singapore Airlines (SIA) Group on Friday said its consideration for the merger comprises the 49% interest in Vistara and ₹20,585 million (₹2,058.5 crore) in cash in exchange for a 25.1% equity interest in the enlarged Air India.

Post-merger, SIA expects to recognise a non-cash accounting gain of around 1.1 billion Singapore dollars and also start equity accounting for its share of Air India’s financial results.

According to a release on Friday, the merger includes an agreement for SIA to contribute its share of any funding previously provided by Tata prior to the completion of the merger, together with relevant funding costs up to ₹5,020 crore that would allow it to maintain 25.1% stake in Air India.

“SIA’s additional capital injection is expected to be Rs 31,945 million (equivalent to SGD 498 million), based on Tata’s funding to Air India to date. This will occur after the completion of the merger and within November 2024 through subscription to new Air India shares.

“Future capital injections will be considered based on Air India’s requirements and available funding options,” according to the release issued while announcing the airline’s financial performance for the six months ended September 2024.

The merger of Vistara with Air India will mark a major consolidation in the fast-growing Indian aviation space.

SIA said the merged entity will have a significant presence across all key Indian air travel segments, including domestic, international, full-service, and low-cost operations.

“This will strengthen SIA’s multi-hub strategy, allowing it to continue participating directly in India’s large and fast-growing aviation market,” it added.

Recently, Air India and SIA recently agreed to significantly expand their codeshare agreement, adding 11 Indian cities and another 40 international destinations to their network.

Vistara Airbus A320 passenger aircraft. File
| Photo Credit: Reuters

On Wednesday (October 2, 2024), Air India said flights operated with Vistara aircraft will have numbers starting with the prefix ‘AI2’ after the merger next month while Vistara’s planes, crew and service will continue to operate as before.

The Tata Group-owned full-service carrier also emphasised that the Vistara experience will remain post-merger.

The merger of Vistara – a joint venture between Tatas and Singapore Airlines – with Air India is scheduled for November 12 which will mark a major consolidation in the Indian aviation space after the integration of AIX Connect with Air India Express.

There are concerns in certain quarters on whether Vistara passengers will continue to get the same services as now post-merger as Air India, which is in the transformation phase, has recently faced certain service issues.

An Air India spokesperson on Wednesday (October 2, 2024) said the teams of Air India and Vistara have been working hard for over a year to ensure that the merger of the legal and regulated entities is seamless for both customers and staff.

“Though the legal entities and Air Operator Certificates will become one on 12 November, the Vistara experience will remain.

“Vistara aircraft, crew and service will continue to operate as before, but with AI2XXX flight numbers bookable via airindia.com,” the spokesperson said in a statement to PTI.

Air India’s airline code is ‘AI’ and that of Vistara is ‘UK’. The latter will fly into the sunset after the merger.

Among other elements, Vistara’s catering is being extended to Air India.

According to the Air India spokesperson, its narrow-body fleet continues to be upgraded with new aircraft being delivered and legacy aircraft being refitted with entirely new interiors.

The Air India-Vistara merger, announced in November 2022, will also see Singapore Airlines acquiring a 25.1% stake in the merged entity.

Gurugram (Haryana):

TATA SIA Airlines Limited, known by the brand name of Vistara announced its merger with Air India on Friday.

The company said in a statement that customers will not be able to make bookings with Vistara for travel on or after November 12.

“Starting 03 September 2024, customers will, progressively, no longer be able to make bookings with Vistara for travel on or after 12 November 2024,” the company said.

However, Vistara will continue to take bookings and operate flights as usual till 11 November 2024. 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, the company informed.

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.

Vinod Kannan, Chief Executive Officer, Vistara, said, “We are immensely grateful to all our customers for their support and patronage over the last 10 years. As we progress further in our growth journey, we want to emphasize that this merger is about offering them more choice with a larger fleet and a wider network, while elevating the overall travel experience. Vistara and Air India are committed to ensuring that this transition is smooth and hassle-free. We are excited about this new phase in our journey and look forward to welcoming our customers again soon – as Air India.”

Campbell Wilson, Chief Executive Officer & Managing Director, Air India, said, “Cross-functional teams from Air India and Vistara have been working together for many months to make the transition of aircraft, flying crew, ground-based colleagues and, most importantly, our valued customers, into the new Air India as seamless as possible. The joint team looks forward to offering our guests an expanded network, additional flight options, an enhanced frequent flyer program and the best of both antecedent airlines and are grateful for the support of our loyal customers through this next phase of building a world class, world scale, global airline with an Indian heart.”

On August 10, Both companies secured the CAR (Civil Aviation Requirement) 145 approval from the Directorate General of Civil Aviation (DGCA) to integrate their aircraft line maintenance operations, as per an official release.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Vistara Airlines will be merging with Air India from November 12, 2024.
| Photo Credit: R.V. Moorthy

Vistara will merge with Air India from November 12, when its operations will be carried out by Air India and all bookings will be redirected to Air India’s website.

Starting September 3, passengers will no longer be able to book tickets with Vistara for travel on or after November 12.

These details were shared in an email from Vistara’s CEO Vinod Kannan to the airline’s employees.

The announcement followed soon after Singapore International Airlines sharing an update on the merger and informing in a press statement that the Indian government had given its nod for its FDI into Air India.

On June 6, the NCLT in an order granted its approval for the merger and allowed a period of nine months for the dissolution of the former. Vistara’s flying permit from the Director General Civil Aviation (DGCA) expires in December 2024.

Tata Sons Pvt. Ltd. will hold 73.38% stake in the merged entity, and Singapore Airlines another 25.1%.

“This approval, along with other governmental and regulatory approvals received to-date, marks a significant development towards the completion of the merger,” the SIA said in a statement.

Singapore Airlines on Friday (August 30, 2024) said it has received approval from the Indian government for the foreign direct investment as part of the proposed merger of Vistara with Air India, a deal that will create one of the world’s largest airline groups.
| Photo Credit: Reuters

Singapore Airlines on Friday (August 30, 2024) said it has received approval from the Indian government for the foreign direct investment (FDI) as part of the proposed merger of Vistara with Air India, a deal that will create one of the world’s largest airline groups.

With the clearance in place, the merger that will see Singapore Airlines acquiring a 25.1% stake in Air India, is expected to be completed by the end of this year.

The proposed merger was announced in November 2022.

Air India is owned by Tata Group and Vistara is a 51:49 joint venture between Tatas and Singapore Airlines.

In a regulatory filing on Friday (August 30, 2024), Singapore Airlines (SIA) said it has received approval from the Government of India for Foreign Direct Investment (FDI) into the enlarged Air India as part of the proposed merger.

“The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the proposed merger,” the airline said in the filing to the Singapore Stock Exchange.

The airline also said the completion of the merger continues to be subject to compliance by the parties with applicable Indian laws, which is currently expected to be completed in the next few months.

“At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024,” it added.

According to Singapore Airlines, the parties are in discussions to extend the long stop date for the completion of the merger. Earlier, it was expected to be October 31, 2024.

The merger, which will create one of the biggest airline groups, was approved by the National Company Law Tribunal (NCLT) in June.

In March, Singapore’s competition regulator CCCS gave a conditional nod for the proposed deal.

Prior to that in September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.

“SIA will make the necessary announcement(s) upon completion of the proposed merger or in the event that there are other significant developments,” the filing said on Friday (August 30, 2024).

New Delhi:

Vistara has offered voluntary retirement as well as voluntary separation schemes for its non-flying staff, ahead of the full service carrier’s merger with Air India, according to officials.

A joint venture between the Tatas and Singapore Airlines, Vistara has around more than 6,500 employees, including permanent and contract staff.

The Voluntary Retirement Scheme (VRS) and Voluntary Separation Scheme (VSS) have been offered for the non-flying permanent employees. Eligible staff can apply for the schemes till August 23, they said.

While VRS is for those who have completed five years of service, VSS is for the staff who are yet to complete five-year service at the airline.

The schemes are similar to those offered by the Tata Group-owned Air India earlier this month.

The schemes are not be applicable for pilots, cabin crew and those holding licences for carrying out their duties.

There was no official comment from Vistara on the schemes. The airline started flying in 2015.

Earlier this month, sources had said about 600 non-flying staff of Air India and Vistara are likely to be impacted by the two airlines’ mega-merger, and efforts will be made to provide job opportunities to the affected employees within Air India group and Tata companies.

Tata Group-owned loss-making full-service carriers — Air India and Vistara — together have more than 23,000 employees.

Meanwhile, the fitment exercise — which involves the evaluation of the roles and responsibilities of staff of both airlines — in the run-up to the merger has been going on for the past few months. The exercise takes into account an individual’s prior experience, performance and other factors.

On May 12, Air India CEO and MD Campbell Wilson, along with Vistara CEO Vinod Kannan, held a one-and-a-half-hour town hall meeting with employees of both carriers about the proposed merger.

At that time, Wilson and Kannan also assured that the fitment, or assignment, of existing employees into the new structure was being done based on merit and competency.

The merger, which will create one of the biggest airline groups, was announced in November 2022. Once the deal is complete, Singapore Airlines will have a 25.1 per cent stake in Air India. Vistara is a joint venture between Singapore Airlines and the Tata Group.

In June, the National Company Law Tribunal (NCLT) cleared the merger, and in March, Singapore’s competition regulator CCCS gave a conditional nod for the proposed deal.

Earlier in September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Hours after Vistara hinted at a probable end to its crisis, saying the flight schedules are expected to normalise over the weekend, pilots have pointed to fatigue issues which could have direct safety ramifications. “Pilots are flying at the edge of their maximum flight duty limitations. This is causing major health issues and everyone falling sick frequently,” sources said.

Vistara saw a surge in flight cancellations as the airline struggled with a shortage of pilots. An increasing number of its pilots have called in sick, protesting a revised salary structure ahead of the full-service carrier’s merger with Tata-owned Air India.

Sources, however, denied “coordinating together and taking mass sick leave”.

“Everyone is just tired from flying. The new FDTL (Flight Duty Time Limitations) rules should have given us some relief but as expected that is also not happening,” they added.

Last week, the Directorate General of Civil Aviation or DGCA deferred the implementation of the revised flight duty norms for pilots that were to be effective from June 1. The revised norms have reportedly been deferred for some time to have wider consultations.

The new norms provide for more rest time for pilots and seek to alleviate pilot fatigue.

Top officials in the airline, including CEO Vinod Kannan and senior members of his management team, held a virtual town hall with striking pilots Wednesday evening where discussions were held on new contracts and rostering issues.

Company sources said the pilots had been promised a course correction to address concerns in the wake of the merger with Air India. This, sources said, will include improved growth potential once the merger is complete and better rostering of pilots, which is expected by May.

Flagging major health issues due to “flying at the limits of the maximum duty limitations”, the pilot sources said: “Everyone is falling sick frequently. Pilots are already exceeding their max sick leaves in a year and ending up in leave without pay”.

They also criticised the airline for “trusting software more than their pilots”. “Pilots have been complaining about fatigue to the management. Management relies on the Boeing Alertness Model (BAM) and says the flight is safe, so you should have nothing to complain about. They trust software more than their pilots,” he said.

Everyone is “angry at the new contract, but we all knew it was coming sooner or later,” they said.

Earlier, company sources said that almost 100 per cent of the pilots accepted the new contract. Pilots expressed no protest during the virtual town hall, they added.

The airline had said on Monday that it was forced to cut a number of flights due to the pilot shortage and was using some of its larger aircraft to “accommodate more passengers.”

Vistara sources said only 24 flights were cancelled Wednesday compared to the 52 a day before

Pilots have been complaining that their cost to company (CTC) had been reduced in the new contract, in which they are mandated to fly 40 hours as opposed to 70 hours earlier. Sources, however, said under the new structure pilots were incentivised to fly more, and could earn more than they did earlier.

The civil aviation ministry said yesterday it was monitoring the developments while the aviation regulator sought daily information on flight disruptions from Vistara.

In recent weeks, discontentment has been simmering among pilots at Vistara, which is in the process of getting merged with Air India. File
| Photo Credit: Reuters

Vistara CEO Vinod Kannan on April 3 called an urgent meeting with all pilots as well as the top management, including the Human Resources division in an attempt to resolve the standoff over a new pay structure announced ahead of its merger with Air India

Aviation watchdog DGCA on Tuesday asked Vistara to submit a daily report on flight cancellations and delays as the Tata group airline cancelled more than 50 flights for the second straight day amid the non-availability of pilots.

The Civil Aviation Ministry is also monitoring the situation of flight cancellations at Vistara, which saw resignations of at least 15 senior first officers in the recent past.

Also Read | Eight reasons for Vistara’s massive flight cancellations

In recent weeks, discontentment has been simmering among pilots at Vistara, which is in the process of getting merged with Air India, following the new contracts wherein there are concerns that fixed pay component is getting reduced and there is more flying-linked incentive in the salary structure.

The new contracts that will bring parity between pilots of Vistara and Air India have been introduced as part of the ongoing merger process.

Vistara is a joint venture between the Tata Group and Singapore Airlines. Many first officers of Vistara’s A320 fleet have been reporting sick in the past few weeks and on Monday alone, around 50 flights were cancelled and many were delayed as there were not enough pilots to operate flights.

(With PTI inputs)