Air India – Vistara merger gets NCLT nod

Industry:    6 months ago

The National Court Law Tribunal (NCLT) has approved the merger of Air India & final.

ET has seen a copy of the order.

The merger will make Air India Group India’s largest international carrier, connecting five of the seven continents, operating more flights on international routes than any other airline.

A nod from NCLT will also allow both airlines to start integrating their networks, human resources and fleet deployments.

The Competition Commission of India had already approved the merger in September 2023.

“Currently Air India and Vistara operate flights to the same destinations around the same time and use different resources at the airport like separate check in counters. The synergy will remove such duplicities and create a more efficient operation,” the person said.

A host of consultants like BCG, Sabre and Oliver Wyman are working on harmonisation of the workforce and route network.

People involved in the process said the process will be done gradually as the airlines don’t intend to ground flights as part of the process.

Sources said that last month Air India CEO Campbell Wilson told the staff in a town hall that about 7,000 employees of Vistara have been assessed for their new positions in Air India and the transfer is likely to begin from June.

Vistara and Air India have also started the integration process of non-flying employees.

Sixty employees of Vistara have already been moved to Air India. Around 120 pilots of both airlines have been transferred between the two airlines.

However, employees of Vistara remain edgy about the merger as they said they haven’t been clarity yet on their future job role.

“We have been told that the process of inducting existing employees of Vistara into the new structure is being done on the basis of merit and competency, and that it will be transparent,” said an employee.

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