ISTANBUL—New Delhi-based Vistara’s integration into Air India has begun, even as the carrier continues its ambitious growth efforts.

Full-service carrier Vistara is jointly owned by Singapore Airlines and the Tata Group. In November 2022, the partners announced an agreement to merge Vistara into Air India, which is also owned by Tata Group. 

“The integration process has finally begun. There are multiple things that needs to happen. For example, we need to apply for several approvals, like from the competition authorities, ministries and so on,” Vistara CEO Vinod Thandali Kannan told Aviation Daily on the sidelines of the recent IATA annual general meeting in Istanbul.

“We expect approvals, assuming everything goes right, in a matter of three to five months,” he said. If the process goes as planned, the integration could be complete in nine to 12 months.

Until then, Vistara continues to operate independently. The carrier recently took delivery of a fourth Boeing 787-9 and launched five weekly Mumbai-London Heathrow services on June 1, which will increase to daily when the carrier receives a fifth 787-9. 

“Currently we are operating 61 aircraft and we are going of up to 70 by March 2024. We are getting stronger,” Kannan said. “Where there are opportunities, we continue to grow, because the India market has strong fundamentals.”

The airline expects to retain 80% to 85% of its employees in the integration process. “Corporate staff, back office, the fact is they are the ones who have built Vistara into what it is today, and they are going to be valuable in the bigger organization,” Kannan said.

Regarding the local aviation market, demand and revenue potential are strong in India, he said. “For most [Indian] airlines as they are coming out of COVID, there has been a good rebound in travel. The issue remains for most airlines on the cost side,” he said.

Asked if the Vistara brand will remain, Kannan said this is something that will be evaluated. “What is very clear, there will be one full-service and one low-cost carrier in the Air India Group,” he said. “To what extent Vistara will survive and in what form, these things are will be decided. But ultimately there will be only one full-service carrier.”