Air India completes merger with Vistara, creating India’s largest full-service carrier

This merger marks the consolidation of all Tata-owned airlines under one entity, operating a unified full-service carrier, Air India, and a low-cost airline, Air India Express.

The merger follows the recent integration of Air India Express and AIX Connect (formerly Air Asia India) on October 1, 2024.

This strategic consolidation is part of the Vihaan.AI transformation programme, a five-year roadmap that aims to establish the Air India Group as a premier global airline with deep Indian roots.

Through this initiative, the unified Air India Group now operates over 8,300 weekly flights across 312 routes, connecting more than 100 destinations worldwide.

With a fleet of 300 aircraft, the Group offers comprehensive domestic and international connectivity, establishing a robust presence in the global aviation industry.

The new full-service entity, Air India, now operates over 5,600 weekly flights, serving more than 90 domestic and international destinations with a fleet of 208 aircraft.

The airline will transport over 120,000 passengers daily, with connectivity extending to more than 800 global destinations through partnerships with over 75 codeshare and interline partners.

The extensive integration process, initiated over two years ago, included the onboarding of more than 6,000 Vistara staff into the new organizational structure, harmonizing operations across four airlines, and aligning over 140 IT systems.

Additionally, more than 4,000 vendor contracts were consolidated, 270,000 customer bookings migrated, and 4.5 million Club Vistara members integrated into Air India’s updated loyalty programme, the Maharaja Club.

Given the complexities of merging two major full-service airlines and integrating with two low-cost carriers, the Directorate General of Civil Aviation (DGCA) worked closely with Air India, along with support from the Ministry of Civil Aviation (MoCA), the Bureau of Civil Aviation Security (BCAS), and other domestic and international stakeholders.

The merger and transformation effort included a commitment to over 500 new aircraft, many of which are already being delivered, alongside a $400 million programme to retrofit interiors on legacy aircraft.

Air India has also opened a state-of-the-art 600,000 square foot training centre capable of accommodating 2,000 employees daily and is constructing a 12-bay maintenance facility slated for operation by early 2026.

To support this growth, more than 9,000 new employees have been hired and trained, and a comprehensive modernization of the airline’s IT infrastructure has been implemented.

Campbell Wilson, Managing Director and CEO of Air India, praised the teamwork and cooperation involved in this large-scale transformation.

“The merger of Air India and Vistara completes the consolidation and restructuring phase of the Air India Group’s post-privatisation transformation journey and is a significant milestone," Wilson said.

"Our teams, across all four airlines and with support from key stakeholders, have worked tirelessly to make this transition as seamless as possible for our customers,” he noted.

Wilson also expressed appreciation for regulatory support, as well as the dedication of Air India’s staff.

“Given the scale and scope of this project, I would like to acknowledge the DGCA, MoCA, BCAS, and others for their instrumental support in this merger," he said.

"I also extend my gratitude to our staff, who undertook this immense task while managing the induction of over 100 new aircraft, and to our loyal customers, for whom all this effort is ultimately dedicated," Wilson added. "We remain committed to creating a world-class global airline with an Indian heart.”

Following the merger, all flights will operate under the Air India brand with the code ‘AI’.

Former Vistara aircraft will be rebranded as Air India flights but will retain the Vistara service style and can be identified by four-digit flight numbers starting with “2” (e.g., UK 955 will become AI 2955).

Club Vistara members have also been transitioned to Air India’s loyalty programme, now renamed the ‘Maharaja Club.’

As a result of the merger, Singapore Airlines, which held a 49 percent stake in Vistara, now holds a 25.1 percent share in the combined Air India Group, underscoring the airline's strong international ties and growth potential.