Vistara starts merging staff with Air India, CEO Vinod Kannan confirms
Tata family seeks to strengthen its aviation empire and compete with market leader IndiGo. Vinod Kannan, the CEO of Vistara, confirmed on July 17 that the staff integration process had already begun.
He anticipates that the necessary regulatory clearances will be obtained by April 2024. This announcement aligns with earlier reports, which indicated that Indian regulators had raised concerns regarding potential antitrust issues. Vistara is co-owned by Tata Group and Singapore Airlines.
The merger between Vistara and Air India was announced in November, and it aims to provide the Tata Group with increased capacity to rival the dominant budget carrier, IndiGo. As part of the agreement, Singapore Airlines will receive a 25.1% stake in the combined entity, in addition to relinquishing its interest in Vistara and making a $250 million investment.
The collaboration between Vistara and Air India marks a significant milestone in the consolidation efforts of these esteemed airlines. By combining their resources and expertise, the Tata Group aims to fortify its presence in the fiercely competitive aviation market, presenting passengers with an array of enhanced services and expanded options. This merger, once successfully accomplished, will undoubtedly reshape the landscape of India's airline industry, ushering in a new era filled with opportunities and challenges for all parties involved, as per Bloomberg.
Vistara has assembled a dedicated team to deliberate on the optimal "end structure" of the integrated organisation. While specific details cannot be disclosed due to regulatory constraints imposed by India's competition law, the airline is actively engaging in discussions with pilots and cabin crew members regarding the merger
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