FDI nod for Air India, no Vistara after Nov 11
Vistara will merge with Air India starting November 12, following government approval of Singapore Airlines' FDI. Singapore Airlines will hold a 25.1% stake in Air India.
Vistara on Friday announced that its planes would be operated by Air India from November 12 — hours after the government approved foreign direct investment (FDI) by Singapore Airlines, thereby removing the last hurdle for the two companies to be merged.

Singapore Airlines, which owns 49% in Vistara, will be getting 25.1% stake in the merged Air India. The Tatas will have the remaining 74.9% stake in the airline.
It informed the country’s stock exchanges on Friday about the approval of its FDI in Air India. “This approval, along with other governmental and regulatory approvals received to-date, marks a significant development towards the completion of the merger.”
“Air India welcomes the Union Cabinet’s approval for the foreign direct investment by Singapore Airlines in Air India. This is an important milestone that facilitates the merger process between Vistara and Air India, and the broader transformation of the Air India Group,” an Air India spokesperson said.
Within hours, Vistara sent emails to flyers stating that, from September 3, it will not be possible to book with Vistara for travel on or after November 12 — the day Vistara’s crew, aircraft and air operator certificate will be transferred to Air India in what will create a more dominant full-service airline in domestic and international markets.
“All Vistara aircraft thereafter will be operated by Air India and bookings for the routes operated by these aircraft will be redirected to Air India’s website,” the Vistara email added.
Air India staff have been working for months with Vistara on the transition and look forward to offering an expanded network, more flight options and an improved frequent flyer programme, the flag carrier’s CEO Campbell Wilson said in a statement.
Air India has said previously the Vistara brand will eventually be retired.
Vistara commenced its commercial operations on January 9, 2015 and currently has a fleet of 70 aircraft. According to latest data from the Directorate General of Civil Aviation (DGCA), Vistara held a market share of 10% in the domestic segment and 4.1% in international traffic. Air India, comparatively, holds a 14.3% share in the domestic market and 13.1% in international traffic to and from India.
The merger of Tatas’ two other airlines — AIX Connect (formerly AirAsia India) and Air India Express — is also underway and awaiting NCLT approval. The Tata Group had acquired Air India’s subsidiary Air India Express in January 2022.
The Tata Group broadly aims to create a large low-cost carrier in the form of Air India Express, focused on short-haul international and domestic market, and a large full-service carrier in the form of merged entity of Air India which is expected to serve the metros and medium to long-haul overseas network.
While announcing the merger in November 2022, SIA said it would be investing ₹2,058.5 crore in Air India as part of the transaction and overall, the airline would have a 25.1% stake in an enlarged Air India Group with a significant presence in all key market segments.
A Vistara spokesperson said customers can look up “Frequently Asked Questions (FAQs) on the Vistara website for any action they may need to take for their travel with the airline”.
The merger means Vistara’s Air Operator Certificate (AOC) will be moved to Air India.
For Vistara flights on or after November 12, the flight numbers will change to Air India, even though in nearly all cases the aircraft, schedule and operating crew will be unchanged until early 2025.
“All customers already booked on Vistara flights after 12th November will automatically have their reservations converted to Air India flight numbers; this will occur in phases during September, and customers will be individually informed when this occurs,” Wilson said in the internal email to the Air India employees.
“For our Vistara colleagues, the HR teams are working on the transfer of those who have not already been seconded into Air India. As with those who have already joined, we look forward to welcoming our new Air Indians, helping them feel at home, and to having their assistance in catalysing and accelerating the new Air India,” he added.
Observers, however, were sceptical about the merger being good for consumers, particularly premium flyers.
Ajay Awtaney of LivefromALounge.com, a website dedicated to Indian aviation, said Vistara was India’s last airline to launch as a full-service carrier, and over the past nine-and-a-half years, has done an incredible job positioning itself as a premium carrier.
“The airline caught the fancy of Indian passengers, as Kingfisher and then, Jet Airways, shut down over the years. The airline will be remembered for its loyalty programme, great meals, innovative marketing and overall, as a fine airline by those who travelled with them over the years,” he said.
“Vistara is the best airline. I have been a fan of its premium economy class. The airline’s crew, the aircraft experience, its landings, the comfort- all of it just made flying easy and comfortable. I wish Air India gets the same comfort and is able to win our (customers’) confidence,” said Prakash Pant, a frequent flier with Vistara.
