Air India is stealing the show yet again by fast-forwarding the Air India-Vistara merger process. Since last month, the Tata-owned Air India has been making headlines, be it the news of mega-merger and consolidation of all four airline brands under one umbrella, signing an historic aircraft order for 470 jets, and inking pacts with engine makers like Rolls-Royce, GE Aerospace, CFM, Pratt & Whitney to power its new fleet, the airline has left no stone unturned to revamp its fleet and increase its market share.
With news pouring in of the domestic and international capacity expansion and new routes being added on Air India flight schedule every day, the two airlines Air India and Vistara are fast advancing the merger process.
A new report has revealed that the task of employee integration is underway. Senior executives from both Air India and Vistara along with consultancy major Deloitte have initiated the merger process of the two airlines, reports The Economic Times.
Law firm AZB Partners has been roped in for regulatory and legal compliance, the report added.
The non-flying staff at Vistara are being assessed for leadership roles through a process called the Hogan Test.
A source close to the airline said: “Team managers and members reporting to the management directly have already been assessed and in the next few weeks, the next level of employees will be assessed for their prospective role. Since the two airlines had executives in the same role, it needs to be carefully assessed on who will be given leadership or managerial role.”
Going ahead, following the interviews with external consultants and internal teams, the best fit among senior to mid-level executives will be retained for the post, and other candidates will be given a different role if available, the source revealed.
The Tata Group faces another challenge of integrating the pilots from both airlines to operate on the merged fleet while considering the seniority and posts of cabin crew.
A town hall will be held with pilots of both airlines in attendance, where things like seniority and career progression will be discussed. Vistara’s chief executive officer Vinod Kannan wrote in a note to employees, “Given the criticality of seamless integration of flight operations, we are planning an exclusive town hall with pilots on the 2nd of March from 12PM to 1PM to share the proposed roadmap for flight operations integration and address queries.”
Along with the merger comes the regulatory approvals. Apart from getting approvals from competition regulators of countries where both the airlines operate, the airline will also need in-house approval from Directorate General of Civil Aviation (DGCA), the Ministry of Civil Aviation, and the Reserve Bank of India.
The competition commissions of both India and Singapore will also have to give a heads-up, as Vistara is a joint venture of the Tata Group and Singapore Airlines. AZB Partners is providing the assistance to Air India to complete the regulatory formalities.
The deadline for the merger is March 2024.