The Sun will set on Vistara on November 12 when the airline will move under the Air India brand with its flights carrying the “AI” flight code instead of its “UK” designator and flight bookings too moving to the latter’s web portal thereby completing the merger between the two airlines.
Starting September 3, passengers will no longer be able to book tickets with Vistara for travel on or after November 12. Vistara will continue to take bookings and operate flights as usual till 11 November 2024.
The important merger milestone was announced by Vistara and Air India soon after Singapore International Airlines said that the Indian government has approved its proposed foreign direct investment (FDI) into Air India. Singapore Airlines, which held a 49% stake in 70-aircraft strong Vistara along with Tata Sons, will now hold a 25.1% stake in the combined entity with a total fleet size of 285 aircraft in return for a ₹2,058.5 crore investment. The combined entity includes Air India, Air India Express and Vistara.
“This approval, along with other governmental and regulatory approvals received to-date, marks a significant development towards the completion of the merger,” the SIA said in a statement.
All customers already booked on Vistara flights after 12th November will automatically have their reservations converted to Air India flight numbers. This will take place in phases during September and customers will be individually informed about the transfer.
“We want to emphasize that this merger is about offering customers more choice with a larger fleet and a wider network, while elevating the overall travel experience. Vistara and Air India are committed to ensuring that this transition is smooth and hassle-free,” said Mr Kannan in a press statement.
The merger is an outcome of Air India’s privatisation, which was sold and transferred to the Tata Group in January 2022. The privatisation included both Air India as well as Air India Express, which was then a low-cost international airline. Since Tatas also co-owned AirAsia India with Air Asia Investment Ltd, and Vistara it decided to consolidate all four airlines and carve out two airlines — a full service carrier in Air India and a low-cost arm in Air India Express to rival IndiGo. So, it bought the remaining 16.33% stake from Air Asia and merged AirAsia India with Air India Express to create a low-cost airline for domestic and international flights, and a full service carrier by merging Air India and Vistara by offering SIA a stake of 25.1% in the full-service entity.
