Tata Sons is looking to complete the integration of Air India and Vistara and operate as a single airline by the end of this year, Air India CEO Campbell Wilson told employees on Monday.
Wilson and Vistara CEO Vinod Kannan, who is also the Chief Integration Officer, held a town hall to update employees on the proposed merger.
The merger will make the Air India group India’s largest international carrier, connecting five of the seven continents, operating more flights on international routes than any other airline, Wilson said, according to people who attended the townhall.
ET had reported about the timeline of the merger its April 30 edition.
The Tata group is awaiting final approval from the Chandigarh bench of National Company Law Tribunal which is slated to approve it by this month.
Its approval will 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.
A host of consultants like BCG, Sabre and Oliver Wyman are working on harmonisation of the workforce and route network.
Sources said that Wilson told employees almost 7,000 employees of Vistara have been assessed for their new position in Air India and the transfer is likely to begin from June, the employees were informed.
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 the airlines have been transferred between the two airlines, Kannan told employees.
The two airlines have different manuals and they need to be merged, while the flying staff of Vistara like pilots will need operator conversion courses. The duration is around 40 days.
The people said the process will be done gradually as the airlines don’t intend to ground flights as part of the process
“ We were 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 it will be transparent,” the people quoted above said.
However, Vistara pilots remain edgy as they have not been given clarity on their seniority in the merged entity.
Seniority of pilots is directly related to their career progression and could become a thorny issue after the merger, said pilots of both airlines on condition of anonymity. Things like choice of base, choice of aircraft and progression from a narrow body to wide body depends on the pilot’s sequence on the seniority list
While Kannan had said that the group is creating a single master seniority list which will be used for career progression, the pilots haven’t been given their sequence.
“Vistara pilots are anxious about what will happen to their seniority post-merger and need some clarity,” said a pilot.
The merger of Vistara into Air India is an effort by the salt-to-steel conglomerate to simplify its airline business. Air India Express and Air Asia India have already been integrated to form a no-frills airline while the combined entity of Air India and Vistara will compete in the full-service segment.
Singapore Airlines which holds 49% stake in Vistara will hold 25.1% stake in the merged entity.
