The Tata Group has announced the merger of Vistara and Air India, the two of the Tata Group’s airlines. With a combined fleet of 218 aircraft, Air India will become the leading domestic and international carrier. According to a company statement, it will rank as the second-biggest local carrier and the nation’s largest international airline. 

Vistara and Air India are scheduled to merge once all necessary approvals are obtained. As a part of this deal, Singapore Airline (SIA) would invest Rs 2,059 crore in Air India, acquiring a 25.1% ownership in the airline.   

Tata Sons Chairman N. Chandrasekaran commented, “The merger of Vistara and Air India is significant step towards our goal of making Air India a world-class airline.” He further added, “We are devoted in transforming Air India to ensure that every client has an exceptional experience. As part of this transition, we are expanding our fleet and network, enhancing safety, improving our customer services, punctuality and dependability.” 

Impact of this Merger 

Air India and Vistara together employe more than 23,000 individuals and with the impending mega-merger, about 600 non-flying employees are expected to be affected. The business intends to make efforts of providing alternate employment options to the affected individuals, within the Air India group and other Tata enterprises.  

Air India CEO Campbell Wilson also commented on the merger. He focused on the installation of new IT systems and the modification of over 100 aircraft, including 40 wide-body planes. The airline is also investing $400 million to replace the present seats with about 25,000 new ones.  

Overall, this calculated consolidation and investment shows a stronger will to improve Air India’s service quality and operational efficiency, making this airline as one of the major forces in market.