Vistara, the Indian airline joint venture between Tata Sons and Singapore Airlines, is set to discontinue its brand following its merger with Air India. The merger, which is expected to be completed by the end of 2022, will create one of India’s largest airlines.
Background on the Merger
The merger between Vistara and Air India was announced in October 2021 and has been in the works for several months. The merger is part of the Indian government’s plan to privatize Air India, which has been struggling financially for several years.
As part of the merger, Vistara will acquire Air India’s international operations and its low-cost subsidiary, Air India Express. Vistara will also take over some of Air India’s domestic routes, as well as its fleet of aircraft.
Impact on Vistara Brand
Following the completion of the merger, Vistara’s brand will be discontinued, and all of its flights will be operated under the Air India name. This means that Vistara’s distinctive branding, including its logo and livery, will be phased out.
The decision to discontinue the Vistara brand was made to avoid confusion among passengers and to ensure a smooth transition to the new, unified airline. The merger is expected to create a more efficient and streamlined operation, with a larger fleet of aircraft and a wider network of destinations.
Reaction from Vistara and Air India
In a statement, Vistara acknowledged the decision to discontinue its brand and expressed its commitment to ensuring a seamless transition to the new, unified airline. The airline also thanked its customers, employees, and partners for their support over the years.
Air India, for its part, welcomed the merger with Vistara and expressed its commitment to building a stronger, more competitive airline. The merger is expected to help Air India reduce its debt and improve its financial performance, while also expanding its reach into new markets.
Conclusion
The merger between Vistara and Air India marks a significant development in the Indian aviation industry and is expected to have a positive impact on both airlines. While the discontinuation of the Vistara brand may be disappointing for some passengers and fans of the airline, it is a necessary step in creating a more efficient and competitive airline. With a larger fleet of aircraft and a wider network of destinations, the new, unified Air India is well-positioned to become a major player in the Indian aviation market.