MUMBAI- The Tata-owned Indian Carriers, Air India (AI) and Vistara (UK), signed the Interline agreement. According to a source, the bilateral interline agreement will help passengers travel seamlessly with both carriers using a single ticket.
Further, the interline agreement usually enables airlines to manage check-ins. Subsequently, handle baggage for each other’s passengers. Also, the bags can be transferred from one Air India to Vistara and Vice versa hassle-free.
Air India Vistara Interline Agreement
According to IATA, An interline agreement is a commercial arrangement between airlines that enables one airline to sell services to customers that are provided by another airline.
By utilizing interline agreements, airlines can offer customers a wider range of itineraries that may not be available through their own network.
So it’s a win-win for both Tata-owned Indian airlines and passengers and for its staff. However, they will need to train staff properly to streamline the workflow.
However, this will not include the premium flyer miles points from Club Vistara. Also, Air India’s frequent flier miles program will be counted individually.
Recently Air India has merged Air Asia India (I5) under Air India Express (IX). Subsequently, by 2024 TatTata will merge Vistara and Air India.
Merger Update
Indian FSC Air India, which Tata Sons own, has approached the Competition Commission of India, an anti-trust regulator, with a proposal to merge its full-service airline, Vistara.
Tata Sons currently holds a 51% stake in Vistara, while the remaining 49% is owned by Singapore Airlines (SIA).
The notice submitted to CCI stated that Tata-owned Air India had proposed a merger with Vistara. Tata Sons currently holds a 51% stake, and the remaining 49% is owned by Singapore Airlines (SIA).
As part of the merger, SIA’s stake in the merged entity will be reduced to a minority of 25.1%. Further, the notice mentioned that the proposed transaction involves joining Tata Singapore Airlines Limited (Vistara) into Air India. Nonetheless, Tata Sons and Singapore Airlines acquired shares in the merged entity.
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