Air India-Vistara Merger: The nearly 10-year-old Vistara is set to bid adieu to the skies as the well-regarded full-service carrier will operate its last domestic and international flights as an independent airline late on Monday night. Vistara flight UK 986 will fly from Mumbai to Delhi and UK 115 will fly from Delhi to Singapore. It will be the last time that the flight code 'UK' will be dotting the firmament and from Tuesday onwards, Vistara flights will have the new code 'AI2XXX'.


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Interestingly, when the airline commenced operations on January 9, 2015, it was the other way around as the maiden flight operated from Delhi to Mumbai. An official on Monday said Vistara's last flights on domestic and international routes are scheduled to be UK 986 and UK 115, respectively. UK 986 is to depart at around 2250 hours from Mumbai to Delhi and UK 115 is to leave Delhi for Singapore at about 2345 hours.


"Thank you for being part of this unforgettable journey and showering us with your #VistaraLove. We will forever cherish these memories. Please follow @airindia for all the latest updates," Vistara said in a post on X.


A joint venture between Tata Group and Singapore, Vistara will be merged with Air India, following which Singapore Airlines will have a 25.1 per cent stake in the enlarged entity.


The merger will also mark the second major consolidation wave in the country's fast-growing civil aviation space after 2006-2007. Post Vistara merger -- also Tata Group's second significant airlines integration after AIX Connect was combined with Air India Express in October -- there will be only Air India as a full-service Indian carrier.


In 2006-07, Indian Airlines merged with Air India and Air Sahara merged with Jet Airways. During the same period, Air Deccan was amalgamated with Kingfisher Airlines.


With a fleet of 70 planes, Vistara operates around 350 flights daily and various initiatives to integrate the systems, people and other elements of the two full service airlines have been progressing since the announcement of the merger in November 2022. 


Fleet & Flights
The enlarged Air India will have a fleet of 208 planes operating on 103 domestic and 71 international routes. It will be flying to 49 domestic and 42 international destinations, according to an official. More aircraft, including wide-body ones, will be joining the fleet in the coming months.


Singapore Airlines (SIA) on Friday said the merger will strengthen SIA's multi-hub strategy, allowing it to continue participating directly in India's large and fast-growing aviation market.


In-flight Experience
Last month, Vistara Chairman Bhaskar Bhat said the integrated entity will share the best practices of the two airlines and the livery of Vistara will stay for some time.


Amid concerns in certain quarters on whether Vistara passengers will continue to get the same services as now since Air India, which is in the transformation phase, has been facing various service issues, it has been repeatedly emphasised that "Vistara in-flight experience is not going away" post-merger.


In a message sent to Vistara customers last month, Air India CEO and MD Campbell Wilson said they can continue to enjoy the same world-class fleet, exceptional service, and familiar faces under the new code 'AI2XXX'.


"With the merger on the horizon and the changes that come with it, we wanted to assure you that your Vistara in-flight experience is not going away. You can continue to enjoy the same world-class fleet, exceptional service, and familiar faces under the new code AI2XXX," he had said. 


Maharaja
Loss-making Air India, under the government ownership, was also known for its iconic 'Maharaja' emblem. Tata Group took back the ownership of the full service airline in January 2022. Post the merger, the vintage 'Maharaja' will be retained through the frequent flyer programme of the integrated entity.


"The existing members of Club Vistara will be seamlessly transferred to Air India's Flying Returns program. With this merger, Flying Returns will also evolve into an all-new avatar 'Maharaja Club'," Air India said last month. 


Investments
SIA will make an additional investment of Rs 3,194.5 crore in Air India post-Vistara merger. The airline, on Friday, said its consideration for the merger comprises the 49 per cent interest in Vistara and Rs 20,585 million (Rs 2,058.5 crore) in cash in exchange for a 25.1 per cent equity interest in the enlarged Air India.


"SIA's additional capital injection is expected to be Rs 31,945 million (equivalent to SGD 498 million), based on Tata's funding to Air India to date. This will occur after the completion of the merger and within November 2024 through subscription to new Air India shares.


"Future capital injections will be considered based on Air India's requirements and available funding options," it said. 


Issues
While most of the elements related to the merger have been addressed in the last nearly two years, there are still some issues that remain. A section of Air India pilots is unhappy that there are different retirement age limits.


At Air India, which was owned by the government since the 1950s and came into the Tata fold in 2022, the retirement age for pilots and other staff is 58 years, whereas at Vistara, which started flying in 2015, it is 60 years.


Also, there are some concerns related to the seniority of pilots at Air India post-merger.