Air India-Vistara Merger Picks Up Steam - India Report
Photo Credit: The Air India-Vistara merger was previously expected to be complete by mid-2025. Air India
Skift Take
The merger of Air India and Vistara combines India’s two full-service carriers, creating the only domestic full-service airline.
The merging of Air India and Vistara seems ahead of schedule, according to reports in Indian media that cite Air India CEO Campbell Wilson's comments at a town hall meeting with the employees.
The timeline now looks like end of this year – it was previously expected to be complete by mid-2025.
Just six weeks ago, pilots of Vistara protested against the new pay structure. Together, the airlines have over 23,000 employees.
Why is the merger important? The merger of Air India and Vistara combines India’s only two full-service carriers, creating the only domestic full-service airline. Air India and Vistara are the second- and third-largest market shareholders in India, respectively, after IndiGo. In the first quarter of 2024, the two airlines collectively held a 22.5% market share, DGCA data showed.
The move was decided upon after the Tata group acquired Air India from the government of India in 2022. As
