Air India CEO Anticipates Completion of Vistara Merger by December

The integration of approximately 7,000 Vistara employees into Air India will commence in the coming months aiming for completion by the end of this year announced Campbell Wilson, CEO and Managing Director of Air India on Monday. This development indicates that the Tata group is expediting the merger process of its two full service carriers. Initially, Vistara's CEO, Vinod Kannan had projected an operational merger with Air India by mid 2025.

Employee Integration and Assessments

During a town hall meeting Wilson and Kannan addressed employees from both airlines. Sources revealed that Wilson shared details about the integration process. So far 120 pilots have been seconded between Air India and Vistara and approximately 60 non flying Vistara staff have been transferred to Air India. Assessments for 7,000 Vistara employees have been completed with advanced stages of fitment in progress. Starting from June these employees will be integrated into Air India in phases. However a small number of Vistara employees will remain until its air operator certificate or AOC is surrendered to the Directorate General of Civil Aviation or DGCA.

Workforce and Operational Changes

When the Tata group acquired Air India in January 2022 the employee ratio between Air India and Vistara was 12:5. This ratio has been maintained over the past two years. Presently, Air India employs around 17,000 people while Vistara has approximately 7,000 employees, including 3,500 non flying staff and 2,500 flying staff.

The two airlines are sharing best practices and harmonizing their standard operating procedures or SOPs. A facility called myIDTravel has been implemented enabling employees to book tickets across both airlines.

Wilson highlighted that Air India has added 70 aircraft in the past 24 months including 17 widebodies and 53 narrowbodies. He equated this expansion to adding an entire Vistara fleet into Air India. Although Wilson and Kannan did not directly address recent disruptions faced by Vistara and Air India Express stemming from employee dissatisfaction they emphasized the ongoing integration and improvements.

To Summarize

The merger of Vistara into Air India is being fast tracked with a target completion by the end of this year. Employee integration is underway with phased inductions starting in June. Both airlines are working together to harmonize operations and enhance efficiency with fleet expansions reflecting their growth ambitions.