(Commonwealth_India) Indian airline Vistara today completed its last flights under its brand, marking the end of an era as it prepares for full integration into Air India. Vistara, a joint venture between Singapore Airlines and Tata Group, has operated for nearly a decade, launching its domestic services in January 2015 and expanding to international flights in 2019.
As part of Tata Group’s strategic expansion in the aviation sector, Vistara will officially operate under the Air India brand starting November 12. This transition comes in the wake of Tata Group’s acquisition of the struggling Air India, a former state-owned carrier, signalling a significant shift in India’s aviation landscape. The merger is a key component of Tata’s broader initiative to consolidate its airline assets, which also includes the integration of AirAsia India into Air India Express.
The integration of Vistara into Air India is not just a rebranding; it represents a strategic move to create a more competitive and robust full-service airline capable of catering to both domestic and international travelers. Singapore Airlines will maintain a 25% stake in the newly enlarged Air India, ensuring continued investment and expertise as the carrier seeks to enhance its service offerings and operational efficiency.
With a fleet consisting of 70 aircraft—comprising 53 Airbus A320neos, 10 Airbus A321neos, and seven Boeing 787-9 Dreamliners—Vistara has carved out a niche in the aviation market. Its international network includes major destinations such as Frankfurt, London Heathrow, and Paris Charles de Gaulle, in addition to six locations across the Middle East and several key points in Asia.
Data from Indian civil aviation regulators indicates that Vistara commanded approximately 9% of the international traffic share among Indian airlines in the second quarter of 2023 and accounted for about 10% of domestic passenger traffic in the third quarter. This positions Air India to potentially capture a larger market share as it absorbs Vistara’s operations and leverages combined strengths in network and fleet.
The timing of this merger aligns with significant shifts in the Indian aviation sector. A court recently ordered the liquidation of Jet Airways, another prominent full-service carrier, effectively removing it from the market after its operations ceased in 2019. This development leaves Air India as the sole remaining full-service, wide-body airline in India. The low-cost carrier Indigo Airlines, however, is embarking on its expansion into the twin-aisle market, having placed orders for up to 100 Airbus A350 aircraft, positioning itself to compete in this space.
As Vistara transitions to become part of Air India, the focus will likely shift to enhancing customer experience and operational reliability and expanding its route network to reclaim its position in a competitive market. The consolidation of these airline operations represents a broader trend towards consolidation in the aviation industry, aimed at achieving economies of scale and better preparedness to face ongoing challenges in the sector.
With the support of Singapore Airlines and Tata Group’s extensive resources and vision, the newly structured Air India is poised to evolve into a formidable player in both domestic and international aviation, aiming to rival global standards in service and passenger experience. The merger is not only significant for the companies involved but also for India’s position in the global aviation landscape, as it seeks to enhance its connectivity and competitiveness in a rapidly changing environment.
