At midnight between 11-12, November Air Vistara will cease to function as an independent entity as the merger of Air India and Air Vistara will be solemnised. While it is certain that several of the 60-plus aircraft in Air Vistara’s fleet will continue to operate in the airlines’ famous aubergine livery for a few years, the Vistara flight code UK will be retired and it is certain that Air India will rationalise routes and services between the two airlines, a process that will not be easy.
To be fair, Tata Sons has already managed an airline merger, that of the former Air Asia India and Air India Express. However, that was much easier as both airlines were low-cost single-class operators, even though they operated different aircraft, Air Asia India, the Airbus A320 and Air India Express, the Boeing 737. But as the leases on older Airbus aircraft end, it is likely that the airline will move to a single fleet of Boeing 737 MAX aircraft.
Things are much more complex for the Air India and Vistara merger even though there is largely a single-type, the Airbus A320-family of aircraft. This is because of different aircraft configurations as well as different service and training standards. Many frequent flyers, including this writer, particularly on routes out of Delhi, Mumbai and Bengaluru are unhappy about small things like Air India’s new domestic catering options. On a recent flight between Delhi and Kochi at lunchtime, the meal provided was wholly inadequate with a sandwich and stuffed bread roll, unlike Vistara’s continuing proper meal service. There is no need for airlines to offer a meal service, but if they claim to be ‘full-service’ carriers they should offer a proper meal or at least offer a decent ‘Buy on Board’ service. The largest airline in India does not pretend to offer ‘full service’; but has a ‘Buy on Board’ service. However, as a frequent flyer, I sincerely recommend that flyers either bring their own food onboard or eat at an airport, no matter how overpriced the latter option is.
That said, consolidation of Air India and Vistara into one large airline is a huge opportunity for Tata Sons and Indian aviation to develop India into a proper global aviation hub and compete with middle-eastern airlines such as Emirates and Qatar Airlines. Particularly as the Indian diaspora across the world grows and will travel back to their home, as well as growing the international inbound tourism market. India is also going to grow domestic aviation at an incredible rate with an estimated 250 million flyers annually by 2028.
But if the merger stalls for any reason, Tata Sons ought to be worried as IndiGo which has built themselves up into a massive presence in India, controlling half the domestic market, will certainly make an international and premium passenger play. On the latter front they have already announced that they will be starting a ‘premium’ class offering from later this winter as well as a new Frequent Flyer program called ‘Blu-Chip’. And with an order for 30 new Airbus A350-900 wide-body aircraft and the new Airbus A321XLR entering service next year, IndiGo can potentially threaten Air India’s global expansion plans as well.
