GURUGRAM: Air India Group has successfully completed the merger between Air India and Vistara, consolidating two of India’s leading full-service carriers into a single, unified entity. This milestone marks the second major merger within the Air India Group in just six weeks, following the integration of Air India Express and AIX Connect (formerly Air Asia India) on 1 October 2024.
The completion of the merger is a significant step in the post-privatisation transformation of Air India, under its ambitious Vihaan.AI program. With this merger, Air India Group now operates a combined fleet of 300 aircraft, offering a comprehensive network of 312 routes covering 55 domestic and 48 international destinations. The Group’s fleet supports over 8,300 weekly flights, with a staff strength of over 30,000 employees.
The newly integrated Air India Group will now operate two distinct brands:
- Air India will continue as the flagship full-service carrier, operating 5,600 weekly flights to 90+ destinations worldwide with a fleet of 208 aircraft.
- Air India Express, the low-cost arm, will continue with 2,700 weekly flights connecting 45 destinations with a fleet of 90 aircraft.
As part of the merger, Vistara will continue to operate under the Air India brand, and customers will identify Vistara aircraft by a special four-digit Air India code beginning with “2” (e.g., UK 955 will now be AI 2955). The full-service offering of Vistara, including its crew and service standards, will remain intact for passengers, ensuring a seamless transition.
Campbell Wilson, Managing Director & CEO of Air India, commented on the merger:
“The merger of Air India and Vistara represents the culmination of a long and complex journey in the Air India Group’s transformation. This integration of two highly respected airlines is a testament to the hard work of our teams across all four airlines and stakeholders, ensuring a smooth transition for our employees, customers, and operations. We’re now poised to offer world-class service with the reach and scale necessary to compete on a global stage, under the Air India brand.”
The merger of Air India and Vistara follows a broader strategy of consolidating Tata Group-owned airlines into a single, cohesive operation. This consolidation is designed to create a full-service carrier of significant scale, while the low-cost Air India Express continues to cater to the growing demand for budget travel. With this merger, the Air India Group is positioned to serve over 120,000 passengers daily and offer 800+ destinations globally through codeshare partnerships.
The Vihaan.AI transformation program also continues to make strides, with significant progress in fleet expansion, employee training, and infrastructure development. Over 500 new aircraft are set to be delivered, and a USD 400 million interior retrofit program for existing aircraft is already underway. A new 600,000-square-foot training facility capable of training 2,000 employees per day has opened, and a 12-bay maintenance base will be operational by early 2026.
The merger also formalizes the strategic shift in ownership, with Singapore Airlines (which previously held a 49% stake in Vistara) now owning 25.1% of the merged Air India Group.
This transformational phase for Air India Group is seen as a crucial part of its mission to become a globally competitive airline group, offering the best of Indian hospitality and service to travelers worldwide.
Key Highlights:
- Air India Group now operates 8,300 weekly flights, covering 55 domestic and 48 international destinations.
- Air India operates 5,600 weekly flights with a fleet of 208 aircraft to 90+ destinations.
- Air India Express operates 2,700 weekly flights with a fleet of 90 aircraft to 45+ destinations.
- Vistara will continue to operate under the Air India brand with Vistara aircraft identified by a special Air India code.
- Singapore Airlines now holds 25.1% stake in the merged Air India Group.
As the airline continues to expand and modernize, the merger of Air India and Vistara sets the stage for a unified and robust Indian airline that competes globally with enhanced scale, service, and connectivity.
