As the news of Vistara’s merger with Air India broke on Tuesday evening, no one could explain it better than Campbell Wilson, the recently appointed CEO of Air India. Expressing happiness over the announcement, Wilson lauded Vistara for achieving a lot since the 51:41 Singapore Airlines and Tata Group JV began operations in November 2013.
The skills, people, systems and processes that have driven Vistara’s success will complement, strengthen and accelerate Air India’s Vihaan.AI transformation programme, and enable the new Air India to more quickly achieve the size, reach and quality of a world The first-class airline is proudly representing India across the globe,” he said in a statement.
as business today As previous reports pointed out, integration of all Tata Group carriers closely linked to success vihaan.aiA five-year plan made by Air India to reclaim its position as a leading domestic and global carrier.
Read also: Will Tata merge Air India and Vistara? does it really matter?
Director and Practice Leader, Transport & Logistics, CRISIL Infrastructure Advisory, said, “The coming together of Vistara and Air Asia in Air India paves the way for a clear road map for rapid integration and growth under the Air India brand ” Jagannarayan Padmanabhan.
“The sector will be immensely benefitted due to the emergence of a single strong player. Passengers will benefit as they will continue to enjoy best-in-class service and enhanced network coverage due to the strategic tie-up with Singapore Airlines.
The integration will be completed by 2024. As part of the deal, Singapore Airlines will invest Rs 2,059 crore in Air India, which is equivalent to a 25.1 per cent stake in the latter.
“This indicates a proactive partnership that will benefit both parties,” said Satyendra Pandey, managing partner, aviation advisory AT-TV.
Read also: Air India, Vistara to merge; Singapore Airlines, Tata Sons hash out mega deals
Reacting to the announcement, an industry insider requesting anonymity commented that with two new metro airports in Delhi (Noida) and Mumbai (Navi Mumbai) and a good economy, the completion of the merger is expected to bring significant growth for Indian aviation. It will be an important year for
“Also, in terms of policy, given that 2024 is a general election year, a lot of work of the present government would have been completed. Therefore, one expects that there will be policy decisions regarding taxes on fuel and more importantly on traffic rights,” the person said.
However, this could put the Tata Group in a quandary. A blatant attempt to merge four different cultures, namely Air India, Vistara, AirAsia India and Air India Express.
But an aggressive Air India under Wilson is determined to make the most of every opportunity that comes its way.
Read also: More than 15 thousand employees, 218 aircraft! Tata to fly high on Indian skies with Air India-Vistara merger