DELHI- The National Company Law Tribunal (NCLT) has approved the merger of Air India (AI) and Vistara (UK) marking the final step in the process.
This merger will position the Air India group as India’s largest international carrier, facilitating connectivity across five of the seven continents. It will operate a greater number of flights on international routes compared to any other airline.
Air India Vistara Merger Approved
With the NCLT’s nod, both airlines are now poised to commence the integration of their networks, human resources, and fleet deployments.
The Competition Commission of India had previously endorsed the merger in September 2023.
An individual involved in the process stated, “Currently, Air India and Vistara operate flights to the same destinations around the same time and utilize different resources at the airport, such as separate check-in counters. The synergy resulting from the merger will eliminate such duplications and lead to a more efficient operation.”
Several consulting firms, including BCG, Sabre, and Oliver Wyman, are collaborating on aligning the workforce and route network.
Those familiar with the matter indicated that the process will be executed gradually, with no plans to ground flights as part of the integration.
Rapid Transition
According to ET sources, Air India CEO Campbell Wilson informed staff during a town hall meeting last month that approximately 7,000 Vistara employees have been evaluated for their new roles within Air India, with transfers expected to commence from June onwards.
The integration process for non-flying staff members of Vistara and Air India has also begun.
Sixty Vistara employees have already transitioned to Air India, while approximately 120 pilots from both airlines have been reassigned.
However, employees of Vistara remain uncertain about the merger, expressing concerns about the lack of clarity regarding their future roles.
“We have been informed that the integration process for existing Vistara employees into the new structure will be based on merit and competency, ensuring transparency,” stated an employee.
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