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Vistara to merge into Air India on November 12; government approves SIA FDI

By Consultants Review Team Friday, 30 August 2024

Vistara will combine with Air India on November 12. Beginning September 3, clients would "progressively no longer be able to book with Vistara for travel on or after November 12." All subsequent flights will be operated by Air India, and bookings will be forwarded to their website from ours. The timetables, aircraft, and crewing for these trips will be essentially unchanged until early 2025. "Our operations will continue as usual until November 11, 2024," Vistara stated in an internal message to workers on Friday.

This date was disclosed shortly after India authorized Singapore Airlines' foreign direct investment (FDI) in Air India. SIA, which owns 49% of Vistara and would hold 25.1% of the merged AI by investing Rs 2,059 crore in it, said in a statement on Friday that the Indian government has authorized its planned FDI into the larger Air India Group, as part of the ongoing merger of Air India and Vistara." This agreement, together with the other governmental and regulatory clearances secured to far, represents a significant step toward the merger's completion."

SIA and Tata Sons are completely dedicated to the Air India Group's growth and success after the merger, which will have a major presence in all main Indian airline market sectors (full service, low-cost, international, and domestic). This transaction will strengthen SIA's multi-hub strategy and demonstrate the company's long-standing commitment to India by giving it a direct share in this vast and fast rising aviation market," according to the announcement.

Vinod Kannan, CEO of Vistara, stated in an internal email to staff "the company is nearing completion of its AI integration. I need your help to achieve a smooth transition with the upcoming activities on the roadmap. We will co-manage this transition time to ensure that consumers receive the best possible assistance, constant communication, and convenience throughout."

Regarding Vistara personnel, the email stated: "Those of you who have already been seconded to Air India will continue to perform your assigned tasks and responsibilities." The HR teams are working on migrating all remaining personnel, including minimum spec team members and all flying staff, and the final date of moving, as well as other details, will be notified to you shortly. The harmonization of staff practices and rules for various verticals is also proceeding, with results to be revealed in the coming weeks.

Kannan assured staff that the merger was "only the beginning of an exciting new chapter in our growth story that presents numerous opportunities for everyone. Together, we are establishing the groundwork for an integrated organization that is ideally positioned to dominate the global aviation market."

"Thank you for your cooperation and everything that you have contributed to our excellent company. You have contributed to build an everlasting legacy in the eyes of our consumers, which will last forever. Finally, we have more than two months of operations to continue to please our clients and succeed in what we do best, as well as complete all merger-related activities. Kannan's message stated, "I will continue to keep you updated on any further developments via the usual updates and hope to meet you in person - on the ground, in the sky, or virtually - in the coming weeks."

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