GURUGRAM- Finally, Vistara Airlines (UK) is merging with Air India (AI) as it gets clearance from the cabinet to allow foreign direct investment (FDI) of Singapore Airlines (SQ) in the Tata-owned Air India Group.
Singapore Airlines which previously held a 49% stake in Vistara, will acquire a 25.1% stake in the merged entity through a 2,059 crore INR investment, necessitating FDI approval. Further, all other required clearances, including those from the Competition Commission and DGCA, have been obtained.
Air India Vistara Merger After Diwali
Tata Group will retain the remaining 74.9% stake in Air India. Following government approval, the merged entity will communicate merger timelines to passengers. Customers with Vistara bookings post-merger will be informed of their flight’s transition to Air India, including new flight numbers and schedules.
Sources told TOI that the merger is likely to occur after Diwali (November 1) to avoid disruptions during peak festive travel. The ideal merger window is expected between post-Diwali and mid-December before fog-related flight disruptions typically begin.
Vistara’s fleet of 70 aircraft will continue operating under its current livery initially. Repainting to Air India’s new livery will occur during scheduled heavy maintenance checks to avoid unnecessary capacity reduction. This approach also capitalizes on Vistara’s superior cabin products compared to Air India’s older aircraft.
Vistara has initiated the transfer of frequent flyer miles to Air India’s loyalty program, notifying passengers of the impending change. Employee relocation has begun, with numerous Vistara staff now operating from Air India’s new Gurgaon headquarters.
Concerns about potential booking class discrepancies post-merger have been addressed. Sources indicate minimal chances of passengers booked in Vistara’s business or premium economy classes being downgraded to economy on Air India flights due to capacity issues.
Air India management previously considered delaying the merger to prioritize upgrading their own fleet while maintaining Vistara as a superior product carrier. However, this plan was abandoned due to mounting concerns among Vistara employees about Air India officials securing key positions in the merged entity.
Despite Air India’s slow ongoing improvement process, the merger is now set to conclude before the end of the calendar year.
Vista: In-flight Entertainment
Ahead of its merger with Vistara, Air India has launched its new wireless inflight entertainment (IFE) service, Vista, across its existing wide-body fleet. The service aims to provide uninterrupted entertainment to passengers until the completion of a retrofit program. Air India plans to extend Vista to its narrow-body aircraft in the future.
This is the same wi-fi that is installed on Vistara. Further, Vistara is the first Indian airline to provide wi-fi onboard.
Vista, powered by award-winning digital services provider Bluebox, utilizes the Blueview digital services platform and is delivered through the Bluebox Wow wireless network system. This innovative service allows passengers to stream content directly on their electronic devices.
The entertainment offerings on Vista span a wide range of content, including Bollywood and Hollywood films, music from global icons, and captivating documentaries. Passengers can access this extensive library using iOS, Android, Windows, and macOS devices. Vista also incorporates a live map display for real-time flight tracking, enhancing the overall travel experience.
Rajesh Dogra, the Chief Customer Experience Officer of Air India said,
At Air India, we are continuously striving to anticipate and meet the evolving needs of our
modern travellers. We are pleased to introduce Vista, a new feature for our customers. It allows
seamless integration of personal devices, enhancing the overall travel experience for our
customers.”Rajesh Dogra, the Chief Customer Experience Officer of Air India
Further, the VP of Global Sales, Bluebox, Kevin Birchmore added,
We are excited to partner with Air India. Together, we aim to set new standards for a
customised customer experience and uninterrupted enjoyment that reflects both Air India’s
commitment to excellence and our commitment to engaging and entertaining customers on
board.”Kevin Birchmore, VP Global Sales, Bluebox
Air India’s content library boasts over 950 hours of entertainment across various formats and genres. The selection includes classic melodies, timeless favorites, BAFTA and Oscar-winning or nominated titles, short films, acclaimed series, and specially curated content for children.
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