Merger with Vistara to be complete by December; Air India CEO

15 May 2024 CW Team

Vinod Kannan, CEO, Vistara, had previously informed reporters in January about his anticipation of an operational merger with Air India by mid-2025. ?The integration of approximately 7,000 employees of Vistara will begin in June, with its merger into Air India targeted to be completed by this year?s end?, said Campbell Wilson, CEO & MD, Air India. During a town hall meeting, both Wilson and Kannan addressed employees from both carriers. Wilson disclosed that 120 pilots have been seconded between the two airlines, along with approximately 60 non-flying staff from Vistara being seconded to Air India. The CEOs also mentioned that assessments for 7,000 Vistara employees have been completed, with their integration into Air India in advanced stages, set to begin from June onwards. A few Vistara employees will remain until the surrender of its air operator certificate (AOC) to the Directorate General of Civil Aviation (DGCA). Maintaining the employee ratio between Air India and Vistara at 12:5 since the Tata group's takeover of Air India in January 2022, Wilson noted during the town hall that this ratio has been sustained over the past two years. Currently, Air India employs around 17,000 individuals, while Vistara has approximately 7,000 employees. Efforts to share best practices between the two airlines are underway, with both carriers harmonising their standard operating procedures (SOPs). Wilson mentioned the activation of 'myIDTravel,' allowing employees to book tickets across both airlines. He also highlighted Air India's addition of 70 aircraft ? 17 widebodies and 53 narrowbodies ? in the past 24 months, equivalent to integrating one Vistara into Air India. Despite recent disruptions experienced by Vistara and Air India Express, Wilson and Kannan did not directly address these issues at the meeting. Vistara, a joint venture between the Tata group and Singapore Airlines, is undergoing a merger with Air India, while Air India Express is merging with AIX Connect to form a low-cost airline subsidiary. Recent turbulence at Air India Express, involving over 100 cabin crew members going on sick leave, followed Vistara's cancellation of 10% of its flights due to pilot sick leave. These incidents are attributed to dissatisfaction over duty schedules and salary packages amid the airline mergers. (Source: Business Standard)

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