Vistara operating last flights as merger with Air India takes off on Tuesday

New Delhi, Nov 11
Full-service airline Vistara will operate its last flights today as it will be merged with the Air India Group on Tuesday.

National carrier Air India has announced that flights operated by Vistara will start using the flight code 'AI2' after the merger of the two airlines.

After the merger, Singapore Airlines will have a 25.1 per cent stake in Tata Group-owned Air India. In 2015, Vistara was set up as a JV with Singapore Airlines' 49 per cent stake.

Despite the integration on November 12, the Vistara experience will "remain the same", said the Tata Group-owned airline. The merger involves Vistara, a joint venture between Tata Group and Singapore Airlines, and Air India.

Currently, Air India uses the airline code 'AI' while Vistara uses ‘UK.’ According to the company, both the airlines have been working hard for over a year to ensure that the merger of the legal and regulated entities is seamless for both customers and staff.

“Though the legal entities and Air Operator Certificates will become one on 12 November, the Vistara experience will remain. Vistara aircraft, crew and service will continue to operate as before, but with AI2XXX flight numbers bookable via airindia.com," said an Air India spokesperson in a statement.

In parallel, Air India’s narrow-body fleet will continue to be upgraded with new aircraft being delivered, legacy aircraft being refitted with entirely new interiors and Vistara’s catering now also extended to Air India.

“We look forward to drawing upon the proud legacies and best practices of both airlines as we form a new airline group of which India can be proud,” the spokesperson added.

In July this year, Air India said it had completed harmonising operating procedures across key functions for the four Tata Group airlines as a crucial step towards the merger. Vistara, a joint venture between Tata Group (51 per cent) and Singapore Airlines (49 per cent), is being merged into Air India to create a single full-service carrier.

Singapore Airlines has stated that it will invest Rs 3,194.5 crore in Air India following the anticipated merger of Vistara with the Tata Group owned airline.

Vistara was set up in 2015 as a joint venture with Singapore Airlines holding a 49 per cent stake in the Indian carrier and the Tata Group owning a majority 51 per cent share. Singapore Airlines will own a 25.1 per cent stake in Air India

At the same time, Air India's subsidiaries, AIX Connect (formerly Air Asia) and Air India Express, have merged to form a single low-budget airline.