India’s premium airline Vistara bids farewell merging with Air India
In a significant development for India’s aviation industry, Vistara, the full-service airline known for its premium in-flight experience, is set to operate its final flight on Monday, marking the end of its nine-year journey. Established as a joint venture between Singapore Airlines and the Tata Group, Vistara will officially merge with Tata-owned Air India, creating a single entity with a broader network and larger fleet. The merger aims to consolidate resources and strengthen Tata’s position in the competitive Indian aviation sector.
As part of the integration, all Vistara operations, including ticketing offices and customer support desks, will transition to Air India. Over recent months, Tata has been migrating Vistara’s passengers and loyalty program members to Air India, aiming for a smooth shift for customers. An Air India spokesperson noted that the merger process includes enhancements to meal services and other in-flight features to combine the strengths of both carriers.
Despite assurances from the Tatas that Vistara’s premium service quality will remain intact, concerns persist among aviation experts and Vistara loyalists. Vistara has earned a dedicated customer base, celebrated for its high standards in food, cabin service, and overall experience. Some branding experts argue that retiring the Vistara name is a loss to the industry, with Mark Martin, an aviation analyst, suggesting that Air India is absorbing a loss-making entity for strategic positioning rather than creating operational synergies. Martin added, “Mergers are meant to make airlines powerful, not merely to offset financial losses.”
In the lead-up to this merger, Tata has launched a $400 million initiative to revamp Air India’s aging fleet, planning to retrofit interiors and enhance service standards. Additionally, Tata has ordered hundreds of new aircraft from Boeing and Airbus, signaling its long-term commitment to transforming Air India. Still, many feel this merger complicates an already challenging turnaround process. Air India’s reputation has recently suffered due to service issues, including complaints of broken seats and faulty entertainment systems. In contrast, Vistara’s strong reputation has led some to question if the merger will dilute the customer experience standards that set Vistara apart.
Branding expert Harish Bijoor voiced disappointment over Vistara’s discontinuation, calling it a “gold standard” for Indian aviation and describing the brand’s dissolution as a “big loss for the industry.” Bijoor recommended a phased approach, suggesting that Vistara could have operated independently under the Air India brand for a few years while Air India focused on raising its service levels to match Vistara’s.
Operational challenges are anticipated during the integration process. Communication will be key in avoiding customer confusion, particularly as passengers accustomed to Vistara may be surprised to see Air India branding. Ajay Awtaney, editor of the aviation site Live From A Lounge, noted the need for clear messaging, especially in the initial months of the merger. “Customers will need guidance when they arrive at the airport expecting a Vistara flight but are directed to Air India,” Awtaney said.
The merger represents Tata’s ambition to position itself as a formidable competitor to the industry leader, IndiGo. With the inclusion of Vistara and Air India Express, Tata’s consolidated airline fleet is expected to reach nearly 300 aircraft, creating a larger, unified Air India group.
For Vistara fans, however, the end of the airline marks a loss, reminiscent of previous premium carriers like Kingfisher Airlines and Jet Airways. While Tata’s expanded Air India may fill the market gap, it remains uncertain if it can match Vistara’s legacy of premium service in India’s skies.