In a major development, full-service carrier Vistara is going to shut its operations after November 11, following the parent firm Tata group’s decision to merge the airline with Air India. The move is part of the Tata group’s efforts to consolidate its all airline businesses under the ‘Air India’ brand.
“We are merging with Air India. As we move along the merger, we inform you that starting 3 September 2024, flights will progressively not be available for bookings for travel beyond 11 November 2024 23:59 hours. All flights thereafter will be operated by Air India and can be booked via the Air India website or mobile app: Vistara,” Vistara said in a statement.
Air India and Vistara together have more than 23,500 employees.
The central government has cleared the last roadblock to national carrier Air India Ltd’s merger with smaller rival Vistara, approving a S$360 million ($276 million) investment by Singapore Airlines Ltd. into the new combined carrier. The FDI nod paves the way for Singapore Airlines’ investment worth S$360 million ($276 million) into the new combined carrier.
Post merger, the Singapore carrier will have a 25.1 per cent stake in Tata Group-owned Air India.
Here’s a Timeline of the Tata Group’s Airline Ventures:
1932: Tata Airlines Founded
- Founder: J.R.D. Tata establishes Tata Airlines, India’s first airline.
- Operation: Began with a single-engine de Havilland Puss Moth, flying mail and passengers between Karachi and Bombay.
1946: Tata Airlines Becomes Air India
- Transition: Tata Airlines was renamed Air India.
- Nationalisation: In 1953, the Government of India acquired a 49% stake in Air India, later leading to complete nationalisation.
2001: Tata Group Expresses Interest in Air India
- Proposal: Tata Group, in partnership with Singapore Airlines, bids to acquire a stake in Air India, but the bid is unsuccessful.
2013: Tata Group Re-enters Aviation
- Joint Ventures: Tata Group partners with AirAsia Berhad and Singapore Airlines to enter the Indian aviation market.
- AirAsia India: Launched as a low-cost carrier.
- Vistara: Launched as a full-service airline in partnership with Singapore Airlines.
2020: Tata Group Bids for Air India
- Background: The Indian government decides to privatize Air India.
- Bidding: Tata Group submits a bid to acquire Air India, including its low-cost subsidiary, Air India Express.
October 2021: Tata Group Acquires Air India
- Acquisition: Tata Group wins the bid for Air India, marking its return to the airline after nearly 70 years.
- Details: The acquisition includes Air India, Air India Express, and a 50% stake in Air India SATS (AISATS).
January 2022: Tata Group Acquires Air India
- Acquisition: Tata Group acquires loss-ridden Air India from the government at a cost of Rs 18,000 crore.
- Air India Express: Tata also gains the authority to operate Air India Express, a fully-owned low-cost subsidiary of Air India.
- Consolidation: Tata Group begins the process of consolidating its airline companies under the Air India brand.
November 2022: AirAsia India Fully Acquired by Tata Group
- Acquisition: Tata Sons acquires the remaining 16.33% stake in AirAsia India from AirAsia Berhad, making it a fully-owned subsidiary.
- Merger Plans: Plans to merge AirAsia India with Air India Express to streamline operations.
November 2023: Vistara Merger with Air India Announced
- May 2024: With the Air India-Vistara merger in progress, the assessment of over 7,000 employees is completed.
August 2024: Govt Approves Singapore Airlines’ Investment
- The Centre clears the last roadblock to national carrier Air India Ltd’s merger with smaller rival Vistara, approving a S$360 million ($276 million) investment by Singapore Airlines Ltd. into the new combined carrier.
- The FDI nod paves the way for Singapore Airlines’ investment worth S$360 million ($276 million) into the new combined carrier.
- Vistara announces its last flight for November 11, and stops booking after September 3.
All customers who have already booked with Vistara for travel November 12, 2024, onwards will have their tickets transferred to Air India, Vistara said in the statement.
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