Vistara and Air India Merger Case Study

On November 12 2025, Air India and Vistara successfully completed a merger. Both airlines are subsidiaries of Tata Group. Tata Group and Singapore Airlines (SIA) have successfully merged Vistara with Air India to strengthen their position in the growing aviation market. This merger included some challenges but was successfully completed on November 12, 2024. With this merger, SIA now holds a 25.1% stake in Air India.

Both SIA and Tata Sons are committed to supporting the growth of the Air India Group. The Airline now has a strong presence across all major segments of the Indian aviation market, including full-service, low-cost, international and domestic. The merger also aligns with SIA’s multi-hub strategy and emphasizes its long-term commitment to India’s expanding aviation market.

Air India and Vistara Merger Case Study

Let’s take a look at the details of both the airlines on Vistara and Air India Merger case.

Vistara

Founder: Singapore Airlines, Tata Sons

Founded in: 2013

Owned By: Singapore Airlines, Tata Sons

CEO: Vinod Kannan

Headquarters: Gurugram

Current Share Price: ₹ 162.75

Revenue: US$1.8 billion

Total. No. of Employees: App. 5500

Total No. of Aircraft: 70

Air India

Founder: J. R. D. Tata

Founded in: 1932

Owned By: Tata Group enterprise 

CEO: Campbell Wilson

Headquarters: Gurugram

Current Share Price: Not listed

Revenue: US$4.7 billion

Total. No. of Employees: App. 18000

Total No. of Aircraft: 300 aircraft

In addition to the Vistara and Air India Merger, the low-cost carriers Air India Express and AIX Connect (formerly known as Air Asia India) merged earlier on October 1, 2024. With this, the Air India Group now has a comprehensive portfolio of airlines which combines both full-service and low-cost offerings. This merger will positions the group to better meet the diverse needs of travelers across various market segments.

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After the Air India - Vistara merger, the Air India Group now operates a combined fleet of 300 aircraft, serving 55 domestic and 48 international destinations, with 312 routes and 8,300 weekly flights. The total combine workforce of both airlines will exceeds 30,000 employees.

Air India runs over 5,600 weekly flights and connects more than 90 destinations with a fleet of 208 aircraft. Air India Express, the low-cost carrier, operates 2,700 weekly flights, serving over 45 destinations with 90 aircraft. This number will increase after the merger of Air India and Vistara airlines.

Air India Vistara Merger New Name

What will happen to Vistara? After the merger, Vistara flights will continue to offer the same in-flight experience, but the aircraft will be identified with the new Air India flight code (e.g., UK 955 will change to AI 2955). The combined Air India service will also be available on the ground. It will offer more options for passengers.

After November 12, 2024, the Vistara website will no longer be available. Customers with existing bookings will need to manage their reservations through the Air India website or mobile app. While there may be some changes to flight terminals as part of the transition, any such updates will be communicated directly to passengers to ensure a smooth experience.

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Vistara’s final flight will operate on November 11, 2024, after which all operations, including bookings and flight management will be fully handled by Air India. Existing Vistara bookings will automatically transfer to Air India's reservation system, so there will be no need for passengers to reissue their tickets. Passengers will be issued updated tickets with new details well in advance, ensuring no disruption to their travel plans.

In terms of loyalty programs, Club Vistara members will be merged into Air India's Flying Returns program. The Club Vistara membership will remain active until November 11, 2024, after which members will receive a new Flying Returns ID. This transition will provide members with continued benefits under Air India’s loyalty program.

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The Vistara and Air India Merger is expected to impact approximately 600 non-flying Vistara staff members. Efforts will be made to provide these employees with new job opportunities either within Air India or the wider Tata Group. For those who cannot be accommodated, a voluntary separation scheme will be offered as a part of the merger process.