AI-Vistara merger important milestone in transformation process: Chandrasekaran
Tata Sons Chairman N. Chandrasekaran on Thursday said the Air India (Al) and Vistara merger is an important milestone in AI’s transformation into a “world-class global airline with an Indian heart.”
In a LinkedIn post, Tata Sons Chairman cited that the AI-Vistara merger comes on the back of AIX Connect (formerly AirAsia India) and the Air India Express merger, which has brought together four airlines to create one integrated airline group.
The AI-Vistara merger took place on November 12, 2024 and the one between AIX Connect and Air India Express was executed on October 1, 2024.
“We have much to look forward to. From its pre-privatisation size, the fleet has grown over 2.5X, and its 300 aircraft carry nearly 200,000 passengers across 100 global destinations every day. Through its partners, the fleet offers worldwide connectivity to over 800 destinations,” he said.
“At the same time, it is important to acknowledge that a merger is undoubtedly a time of change—distinct cultures are put together to create something new and lasting. Such mergers take time to play out. We have moved quickly, completing the process in 2 years, while keeping our eye on the ultimate goal: to realise Al’s potential and turn it into a world-class global airline.”
According to Chandrasekaran, different parts of the business were at different points of maturity when the merger commenced, so they will take time to fully align.
“While this happens, I am clear that Vistara will continue to deliver the service experience it is known for while bringing to Al some of its best practices. Customers will continue to experience Vistara’s in-flight service and the cabin crew that they are accustomed to,” he said.
Tata Sons Chairman said Air India’s turnaround could not happen by just allocating resources but by “rethinking every aspect of the airline’s functioning from the ground up.”
“Change had to be meaningful, not just in matters of appearance. In the last 2 years, we have moved swiftly to invest in people, processes, systems, and technology. New staff and planes are already in service, and more are on the way,” he said.
Besides that, he pointed out that the airline group has created South Asia’s largest training academy for pilots, cabin crew, and staff.
Furthermore, a state-of-the-art flying academy for cadet pilots and a service facility for aircraft of different types are also being established, he said.
In addition, Tata Sons Chairman pointed out that as more new aircraft are delivered and the legacy fleet is completely refitted, a new Al will take flight.
“We are fully aware that expectations for the new Air India are sky high. We expect nothing less, and we expect to deliver nothing less,” he said.
