Air India – Vistara merger: Implications for employees & consumers

Vistara's workforce to be absorbed by Air India as integration and service improvements take place.

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The merger of Air India and Vistara is expected to have a significant impact on the employees of both airlines, albeit in an uneven manner. Vistara’s CEO, Vinod Kannan, has recently confirmed that the merger will lead to the complete absorption of Vistara’s employees by Air India. This means that over 5000 Vistara employees, including pilots, flight attendants, and engineers, will need to seek new roles within Air India, which is owned by Tata. It is worth noting that approximately 80 per cent of Vistara’s workforce is in operational roles, which will require them to undergo a transition as Vistara’s aircraft gradually merge with Air India’s fleet.

The integration process is currently underway, with Indian aviation authorities, including the Ministry of Civil Aviation and DGCA, and authorities from Singapore overseeing the process. Following the merger, Air India will become the foremost international carrier in India and the second largest domestic carrier, with a combined fleet of 218 aircraft. Vistara presently possesses a fleet of 53 planes, which comprises Airbus A320s and A321neos, Boeing 737-800NGs, as well as Boeing 787-9 Dreamliners.

In addition to the merger, Air India is also focused on improving its services through its transformational plan called Vihaan.AI, which spans over five years. The plan aims to enhance the airline’s network, on-time performance, reliability, and customer services while maintaining Vistara’s legacy of excellent customer service. Vinod Kannan provided assurance to customers that they can anticipate receiving an equivalent standard of service subsequent to the merger with Air India.

Overall, the Air India Vistara merger will lead to significant changes for both airlines’ employees, but the effects will be more pronounced for Vistara’s workforce. Nevertheless, the merger is expected to create a more robust and competitive airline, offering enhanced services to consumers.

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