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Vistara Fades Out, IndiGo Takes Flight: Indian Aviation Redefined

Vistara merges with Air India, ending independent operations

Vistara Fades Out, IndiGo Takes Flight: Indian Aviation Redefined Vistara will operate its final flight on November 11, 2024, marking the end of its independent operations. Starting November 12, all Vistara flights will be fully integrated into Air India under the Air India brand. This merger follows Tata Group’s acquisition of Air India in 2022, and Singapore Airlines will reduce its stake in the combined entity from 49% to 25.1%.

For loyalty program members, Club Vistara (CV) Points will be transferred to Air India’s Flying Returns program at a 1:1 ratio after November 11. Existing Flying Returns members will have a seamless transition, while new members will be registered with the same details as their CV accounts.

Vistara credit cardholders can continue to enjoy their benefits, including One Class Upgrade and Complimentary Ticket Vouchers, until March 31, 2026. After the merger, cardholders will earn Flying Returns Points instead of CV Points, with all CV Points converted on a 1:1 basis.

Club Vistara tier statuses will remain valid for another year, ensuring members can continue to enjoy privileges like lounge access and priority check-ins until at least March 2025. However, renewals for Vistara co-branded credit cards will stop after March 31, 2025. These cards, such as the Club Vistara SBI Card and Axis Vistara Infinite Card, will still offer additional benefits until then.

From January 1, 2025, Vistara miles will be transferred to the Flying Returns program, and members will retain their existing loyalty status with Air India. Detailed information about the transfer of miles and points will be shared as the process unfolds.

For any questions regarding the transition, passengers are advised to contact Air India’s customer support or refer to the official website. Vistara’s routes, schedules, and services will remain unchanged during the merger, and airport staff will assist customers during the transition. This integration will also expand Air India’s connectivity, offering over 90 destinations domestically and internationally, along with additional access through codeshare and interline partnerships.

Vistara Fades Out, IndiGo Takes Flight: Indian Aviation Redefined  Vistara, a joint venture between Tata Sons and Singapore Airlines, is bidding farewell to the Indian aviation landscape as it merges with Air India on November 12, 2024. The merger aims to create a dominant full-service carrier in both domestic and international markets. The process, which was announced in November 2022, faced challenges such as pilot shortages and crew protests over salary structure alignments.

As part of the integration, Vistara’s 49% stakeholder, Singapore Airlines, will reduce its stake in Air India to 25.1% and invest ₹3,194.5 crore into the airline. Air India is preparing for the transition by deploying additional resources, including help desk kiosks and staff in Air India x Vistara-branded T-shirts, to assist passengers. Over 270,000 Vistara customers and 4.5 million loyalty members have already been migrated to Air India, and flights previously operated by Vistara will now carry Air India’s four-digit codes starting with “2.”

In addition to the fleet integration, Air India’s narrowbody and widebody fleets are being upgraded, including the addition of six A350 aircraft. The merger will also enhance Air India’s connectivity with over 90 destinations and more than 800 additional destinations through partnerships.

On the management front, Vistara CEO Vinod Kanan will continue as the Chief Integration Officer, overseeing the merger, while other Vistara executives take on new roles within the Tata Group. However, some Air India pilots are unhappy about differing retirement age limits between the two airlines, as Air India’s pilots retire at 58, compared to Vistara’s 60.

With Vistara’s closure, India will have only one full-service carrier, marking the end of a significant chapter in the country’s aviation industry. Vistara’s loyal customers took to social media to share nostalgic memories, praising the airline for its exceptional service since its launch in 2015.

As a response to this shift, IndiGo is introducing business class on select domestic routes, such as Delhi-Mumbai, to cater to the rising demand for premium travel.

Vistara Fades Out, IndiGo Takes Flight: Indian Aviation Redefined  The Indian airline industry is experiencing a major shift, highlighted by two key developments. Vistara is operating its final flight before merging with Air India, a complex process that began two years ago. Meanwhile, IndiGo, the market leader, is launching its business-class cabins, marking its first venture beyond budget travel.

The merger of Vistara with Air India, owned by the Tata Group, is set to create a stronger competitor to IndiGo. This merger includes integrating Vistara’s premium offerings, such as flatbed seats and a premium economy class, with Air India’s service. However, Vistara’s loyal customers are concerned about potential service declines after the merger, although Air India has promised to extend Vistara’s catering standards across the newly merged airline.

The combined Tata airlines will have a fleet of 210 jets, with 470 more on order, giving them a 25% market share. In contrast, IndiGo maintains a dominant 62.5% share. To compete, IndiGo is introducing its “IndiGoStretch” business class on select routes, offering benefits like priority check-in, more baggage, and enhanced seating at a significantly lower price point than Air India. While the new offering caters to a broader range of travelers, it may not fully meet the expectations of traditional business-class flyers, who are accustomed to higher standards.

IndiGo’s long-term strategy also includes expanding its fleet of widebody jets, which will position it to compete with Air India and Vistara in the long-haul market starting in 2027. This competition signals a changing landscape as both airlines push into each other’s territories.