Nobody could have better articulated the Vistara-Air India merger when it first became public on Tuesday evening than Campbell Wilson, the newly appointed CEO of Air India. Wilson expressed happiness at the news and praised Vistara for its accomplishments since the 51:41 Singapore Airlines and Tata Group JV started operating in November 2013.
"The skills, people, systems, and processes that have driven Vistara's success will complement, strengthen, and accelerate Air India's Vihaan.AI transformation programme," he said in a statement. "This will enable the new Air India to more quickly attain the size, reach, and quality befitting a world-class airline proudly representing India around the globe."
Director and practise leader for transport & logistics at CRISIL Infrastructure Advisory Jagannarayan Padmanabhan stated that the merger of Vistara and AirAsia into Air India clears the way for a speedy integration and a clear road map for expansion under the Air India brand.
The development of a single strong operator will have a significant positive impact on the sector. The strategic partnership with Singapore Airlines will benefit passengers as they will continue to receive best-in-class service and expanded network coverage,he added.
By 2024, integration will be finished. Singapore Airlines would invest Rs 2,059 crore in Air India as part of the agreement, which equates to a 25.1% stake in the latter.
Satyendra Pandey, managing partner of the aviation consultant AT-TV, said that this suggests an active involvement that will benefit both sides.
An anonymous industry insider responding to the news noted that the merger's completion will herald a historic year for Indian aviation thanks to the opening of two new metro airports in Mumbai (Navi Mumbai) and Delhi (Noida).
Additionally, considering that 2024 is a general election year, one would anticipate that the current administration would have finished a significant amount of work in terms of policy. Therefore, one would anticipate that decisions would have been made on fuel taxes and, more crucially, traffic rights, the individual added.
The Tata group could find itself in a sticky scenario as a result, though. the enormous undertaking of combining four distinct cultures—Air India, Vistara, AirAsia India, and Air India Express—into one.
However, Wilson's aggressive Air India appears prepared to take advantage of every opportunity that crosses its path.