Air India to Operate Vistara Planes Following FDI Approval for Merger

Vistara, a full-service airline, announced on Friday that its aircraft will be operated by Air India starting in November, following the government’s approval of the Foreign Direct Investment (FDI) for the merger between the two airlines. Vistara has stated that from September 3 onwards, bookings for travel on or after November 12 will no longer be available on Vistara’s platform.

“After November 12, all Vistara aircraft will be operated under Air India, and bookings for these routes will be redirected to Air India’s website,” the statement added. Vistara is a joint venture between the Tata Group, which owns 51% of the airline, and Singapore Airlines, which holds a 49% stake. The merger required government approval due to India’s FDI regulations, which limit foreign ownership in the airline industry. Following the merger, Singapore Airlines plans to invest up to ₹5,020 crore ($599 million).

Singapore Airlines has stated that the merger, already cleared by Indian and Singaporean regulators, is expected to be completed by the end of 2024. Initially, the merger was slated for completion by March, but it was delayed due to the need for additional regulatory and government clearances. The merger plan, announced in November 2022, aims to create a stronger airline capable of serving both domestic and international markets. India, one of the fastest-growing aviation markets, has seen significant aircraft orders from airlines like IndiGo and Air India with Airbus and Boeing, while international carriers are also increasing their presence.

Air India’s CEO, Campbell Wilson, mentioned that Air India staff have been working closely with Vistara to ensure a seamless transition. The airline looks forward to offering an expanded network, more flight options, and an improved frequent flyer program. Air India has also indicated that the Vistara brand will eventually be phased out as it integrates into Air India. Post-merger, Singapore Airlines will hold a 25.1% stake in the combined entity and plans to invest $250 million into the merged airline.

Vistara CEO Vinod Kannan expressed gratitude to customers for their support over the past decade, emphasizing that the merger aims to offer more choices, a larger fleet, and a wider network while enhancing the overall travel experience. He assured that both Vistara and Air India are committed to ensuring a smooth and hassle-free transition. “We are excited about this new chapter and look forward to welcoming our customers again soon—as Air India,” Kannan added.