Goodbye Vistara: Why flyers’ favourite carrier merged with Air India

Why Vistara merged with Air India despite being flyers’ favourite

Vistara, established as a joint venture between Tata Sons and Singapore Airlines, has long been a favourite among premium passengers, especially for its onboard service quality and meal offerings. However, despite its popularity, Vistara never reported an operational profit since its inception, facing a range of challenges exacerbated by the Covid-19 pandemic. Singapore Airlines, facing its own financial constraints and government support during the pandemic, struggled to justify maintaining a loss-making brand in India’s competitive market.

The consolidation is also intended to boost Air India’s market share, with the ambitious goal of capturing 30% of India’s commercial aviation market dominated by IndiGo. The Tata Group will leverage Air India’s established brand while eliminating internal competition between Vistara and Air India, both of which have endured financial challenges in recent years.

The move, however, has raised concerns among Vistara’s loyal customer base, particularly premium passengers. As the merged airline scales up, it will face pressure to meet or exceed the service standards that Vistara’s frequent fliers have come to expect.

Air India has assured that the in-flight experience offered by Vistara, including the products and services such as menu and cutlery, will continue for customers. The Vistara-turned-Air India flights will be serviced by the same Vistara crew. Air India has planned to transfer existing members of Club Vistara to its Maharaja Club program.

How to identify erstwhile Vistara aircraft