Tata Sons Concerned About Vistara’s Merger With Air India: What’s at Stake?

As the merger between Air India and Vistara draws closer, set to take effect on November 12, 2023, Tata Sons, the owner of Air India, is closely monitoring the process. The merger is part of Tata’s broader vision to consolidate its aviation business, but the group is concerned about maintaining Vistara’s high service standards. Vistara has earned a reputation as a premium airline, and Tata Sons wants to ensure that this image and its loyal customer base remain intact as the integration progresses.

Maintaining High Service Standards

According to a recent report by The Economic Times, Air India held a meeting last week where senior management discussed the upcoming merger. The primary focus was ensuring that Vistara’s superior service standards are maintained throughout the process. Tata Sons is aware that any decline in service quality could negatively impact both brands, particularly given that Vistara has consistently set high benchmarks in customer satisfaction.

The challenge is to ensure that the merging of these two airlines doesn’t dilute the premium experience that Vistara has become known for. The goal is to integrate the two brands without compromising on customer expectations or service delivery.

High Expectations from Tata and Vistara Customers

After Tata Sons acquired Air India, expectations for a better-quality flying experience have skyrocketed. The company understands that Vistara’s loyal customers anticipate the same level of service even after the merger. Vistara has consistently been seen as a premium brand, while Air India has struggled in the past with its service quality. The merger comes with the risk of alienating Vistara’s customer base if their high standards aren’t maintained.

An official involved in the process told The Economic Times, “Consumers expect much better service since Tata took over Air India. Vistara has always been a brand known for its quality, and that expectation must be met post-merger.”

Vistara Staff Also Concerned

It’s not just customers who are concerned about the merger—Vistara’s staff are also wary of the integration. Employees fear that merging with Air India may affect their established workflows and service practices. Tata Sons has reassured both employees and customers that the transition will be seamless. The group is taking steps to ensure minimal disruption to operations, but there remains a significant focus on balancing Air India’s growth without undermining Vistara’s established reputation.

Assuring Vistara Customers of Continued Service

To ease customer concerns, an Air India spokesperson explained that minimal changes will be made during the transition to ensure continuity of services. For Vistara customers who have already booked flights after the November merger, there will be little disruption apart from flight numbers being adjusted to Air India codes. The aircraft, schedules, and crew will remain largely unchanged until early 2025, providing a smooth transition period.

Vistara Aircraft to Retain Premium Service

A major focus for Tata Sons is ensuring that Vistara’s high standards in terms of aircraft, crew, and inflight services are preserved. According to sources, Vistara’s aircraft will continue to be operated by its existing inflight crew for the foreseeable future, ensuring no drop in the quality of service. Tata Sons has also confirmed that no changes will be made to Vistara’s fleet, crew, or livery until Air India’s service standards are brought up to the same level.

Cross-functional teams from both airlines have been working closely to ensure a smooth integration. This includes maintaining Vistara’s customer service standards at key airports like Delhi, where Vistara’s ground-handling teams will continue to manage operations.

Merger of Loyalty Programs

Another key aspect of the merger is the integration of Vistara’s frequent flyer program, Club Vistara, with Air India’s Flying Returns program. This merger will ensure that customers of both airlines continue to enjoy the benefits of loyalty programs as they transition into a single entity.

Air India’s Fleet Upgrades Underway

While Vistara’s premium service will be preserved in the short term, Air India is also making significant strides to improve its overall quality. The airline has started upgrading its fleet of narrow-body aircraft, with plans to refurbish 27 planes. These upgrades include completely new interiors, featuring a three-class cabin layout, much like what Vistara currently offers.

The first aircraft, an A320neo, was sent for retrofitting in September 2023. This move is part of Tata’s long-term vision to improve Air India’s service quality and align it more closely with the high standards set by Vistara.

What Lies Ahead

The merger of Air India and Vistara represents a significant step in Tata Sons’ efforts to revive India’s national carrier and elevate it to world-class standards. While the road ahead poses challenges, particularly in maintaining Vistara’s premium reputation, Tata Sons is committed to a seamless transition.

For now, Vistara’s aircraft, crew, and service standards will remain untouched, ensuring that loyal customers continue to experience the high-quality service they’ve come to expect. With fleet upgrades and the integration of loyalty programs underway, Tata Sons is working diligently to ensure that both brands benefit from the merger without compromising on quality.