Tata Group to keep Air India's top management post Vistara merger

16 Jul 2024 CW Team

Vinod Kannan , CEO, Vistara is likely to return to his parent company, Singapore Airlines (SIA). Kannan had joined Vistara in 2019 as its Chief Strategy Officer under a secondment from SIA. Deepak Rajawat, Vistara's Chief Commercial Officer, is expected to join the merged entity. While most Vistara employees will become part of the new company, some roles may become redundant due to previously filled positions at Air India.

Air India has been actively hiring talent from other Tata Group entities and startups to revamp the company, which had incurred losses exceeding Rs 150 billion under government ownership before the Tata acquisition. Some Vistara employees have already been transferred to Air India.

"Vistara has been a terrific brand. The team has done a wonderful job, but there is a greater purpose to maintain continuity in a larger entity," said a person involved in the process.

A team of senior executives from Air India and Vistara, along with the Boston Consulting Group, is working on integrating human resources. Law firm AZB Partners is handling legal and regulatory compliance. As part of the integration process, Vistara?s non-flying staff have been evaluated using the Hogan Test, which assesses personality traits necessary for job fit, especially leadership roles.

The Tata Group aims to consolidate its airline business, which posted a loss of Rs 155.32 billion in fiscal 2023, to leverage synergies, enhance efficiencies, and reduce duplication. As part of the restructuring, Air India Express and AirAsia India have merged to form a no-frills airline, while the combined Air India and Vistara entity will compete in the full-service segment. The conglomerate aims to complete the Air India-Vistara integration by the end of this year, although customer-facing elements, including Vistara's brand identity, will remain unchanged until 2025.

The merger is also significant for Singapore Airlines, as its 25.1% stake in the merged Tata airline entity will enhance its presence in the world's third-largest aviation market. (Source: ET)

The Tata Group is committed to maintaining continuity at the top management level of Air India following its merger with Vistara. According to sources, all top executives of Air India are expected to retain their positions after the merger. Campbell Wilson will continue as Chief Executive, with Nipun Aggarwal and Sanjay Sharma remaining as Chief Commercial and Transformation Officer and Chief Financial Officer, respectively. Vinod Kannan , CEO, Vistara is likely to return to his parent company, Singapore Airlines (SIA). Kannan had joined Vistara in 2019 as its Chief Strategy Officer under a secondment from SIA. Deepak Rajawat, Vistara's Chief Commercial Officer, is expected to join the merged entity. While most Vistara employees will become part of the new company, some roles may become redundant due to previously filled positions at Air India. Air India has been actively hiring talent from other Tata Group entities and startups to revamp the company, which had incurred losses exceeding Rs 150 billion under government ownership before the Tata acquisition. Some Vistara employees have already been transferred to Air India. Vistara has been a terrific brand. The team has done a wonderful job, but there is a greater purpose to maintain continuity in a larger entity, said a person involved in the process. A team of senior executives from Air India and Vistara, along with the Boston Consulting Group, is working on integrating human resources. Law firm AZB Partners is handling legal and regulatory compliance. As part of the integration process, Vistara?s non-flying staff have been evaluated using the Hogan Test, which assesses personality traits necessary for job fit, especially leadership roles. The Tata Group aims to consolidate its airline business, which posted a loss of Rs 155.32 billion in fiscal 2023, to leverage synergies, enhance efficiencies, and reduce duplication. As part of the restructuring, Air India Express and AirAsia India have merged to form a no-frills airline, while the combined Air India and Vistara entity will compete in the full-service segment. The conglomerate aims to complete the Air India-Vistara integration by the end of this year, although customer-facing elements, including Vistara's brand identity, will remain unchanged until 2025. The merger is also significant for Singapore Airlines, as its 25.1% stake in the merged Tata airline entity will enhance its presence in the world's third-largest aviation market. (Source: ET)

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