By Staff Correspondent
Air India, the Indian airline owned by the Tata group, will discontinue the Vistara brand upon completion of its merger with Tata SIA Airlines Limited, according to Chief Executive Officer and Managing Director Campbell Wilson. The merged entity will be called Air India, although some elements of the Vistara heritage will be celebrated, Wilson told reporters in a virtual press conference.
The merger, announced in November 2022, is expected to be completed by March 2024. Singapore Airlines will hold a 25.1% stake in the merged entity, with Air India becoming the second-largest domestic airline in India. In July 2022, Vistara became the second-largest domestic airline in India, with a market share of 8.8%, but Air India overtook it in January with a share of 9.2%.
Wilson said that Air India will adopt many of Vistara’s systems and practices, with the focus on putting Air India on a similar platform as Vistara. The airline is also exploring opportunities for integration between the two full-service carriers.
Air India has also decided to retain the Maharajah brand and is working on developing it in line with the modern world. The airline made aviation history earlier this month with the biggest-ever aircraft order, agreeing to purchase 840 aircraft, including 470 firm orders, from Boeing and Airbus.
Wilson said that the requirements for the next few years are catered for by this order and that the airline will decide on converting options into firm orders depending on the market situation. The airline will finance the aircraft order through a combination of cash flows, shareholder equity, and sale and leaseback agreements.
