The Air India Group has successfully completed the operational integration and legal merger of Air India and Vistara, creating a substantial full-service carrier and marking a key milestone in its post-privatisation transformation. This follows the merger of the group’s low-cost carriers, Air India Express and AIX Connect (formerly AirAsia India), on October 1, 2024.
The consolidation of the group’s four airlines into a unified entity, one full-service and one low-cost carrier, is a step in the ongoing Vihaan.AI transformation program. This five-year initiative aims to position Air India Group as a world-class global airline.
Campbell Wilson, managing director and chief executive officer of Air India, said: “The merger of Air India and Vistara completes the consolidation and restructuring phase of the Air India Group’s post-privatisation transformation journey, and is thus a significant milestone.
Wilson also cited that support from the Directorate General of Civil Aviation (DGCA), Ministry of Civil Aviation (MoCA) and the Bureau of Civil Aviation Security (BCAS) made the merger possible, adding: “Over the past two years, teams across the four airlines have worked closely together and with other stakeholders to ensure that the transition of people, assets, operations and, most importantly, customers, was as seamless as possible."
Preparation for the full-service merger commenced more than two years ago and has seen the induction of more than 6,000 staff from Vistara into a new organisation structure, the harmonisation of operating procedures across the four airlines, and alignment of over 140 IT systems. Amongst many other aspects, more than 4,000 vendor contracts have been consolidated, 270,000 customer bookings migrated, and 4.5 million Club Vistara frequent flyer accounts inducted to Air India’s recently redesigned frequent flyer program, Maharaja Club.
In addition, the Vihaan.AI transformation program has not only consolidated its four airlines but also committed to over 500 new aircraft, with deliveries already underway. A $400 million interior retrofit for existing aircraft has already begun, and a new 600,000-square-foot training facility capable of accommodating 2,000 employees daily is now operational.
The unified Air India Group now operates over 8,300 weekly flights on 312 routes, connecting more than 100 domestic and international destinations with a fleet of 300 aircraft.
Watson Farley & Williams (WFW) advised Air India and Vistara on the merger. The law firm's London team was led by partner Randeep Bubbra, supported by senior associate Liam Clozier and associates Sam Jones, Abdulla Zaman, and Zsofi Bori.
In addition, the WFW Singapore aviation team advised 11 different lessors and financier groups in relation to the merger. The Singapore team was led by partner Richard Williams, supported by senior associate Yue Ma, associates Lyssetta Teo, Shauna Yong, Andy Wilson, Anmol Gill and Milky Wong, and Hong Kong associate Jessica Ko.