Tata Group Focuses on Building a New Air India Post-Vistara Merger

The Tata Group now has a clear path to focus on transforming Air India following the official merger of Vistara into the airline, according to Campbell Wilson, CEO of Air India. The integration allows Tata to prioritize the development of a revamped airline without the challenges and uncertainties that previously surrounded the merger.

“I think we’ve articulated the broad aspiration as being a world-class carrier with an Indian heart,” Wilson stated during an exclusive conversation with *The Economic Times* two days after the merger became official on November 12.

Leveraging Vistara’s Strengths

The new Air India aims to adopt operational standards, business strategies, and best practices inspired by Vistara, which had established itself as a benchmark for quality. Wilson highlighted that integrating Vistara’s strengths is a crucial step toward making Air India not only comparable to Vistara but even better. “With a lot of Vistara people coming into Air India, together with a lot of people coming from outside Vistara and Air India altogether, the intention is very much to make Air India not just like Vistara but better,” he remarked.

The consolidation process has positioned Air India as Tata’s flagship full-service airline, while AirAsia India has merged with Air India Express to cater to the no-frills segment. The combined entity, comprising Air India and Air India Express, now operates 298 aircraft and serves 55 domestic destinations and 48 international locations.

Achieving Merger Milestones Swiftly

Wilson emphasized the remarkable speed at which these mergers were completed. “Internationally, such mergers often take 5-8 years, yet we accomplished it in just over two,” he explained. Not only was the Vistara-Air India merger finalized in this timeframe, but the integration of Air India Express with AirAsia India also took place in October. These developments occurred simultaneously with efforts to transform Air India.

To ensure a seamless transition, Air India had established a “war room” in the lead-up to the operational merger. This was activated on the Friday before the November 11 midnight deadline and played a pivotal role in the successful integration of aircraft and systems. “It ran intensively through Monday and into Tuesday, ensuring the successful transition of aircraft and systems,” Wilson revealed. He added, “A pleasant surprise in such a complex merger, where minor glitches are often expected…the process couldn’t have gone more smoothly.”

Despite the smooth process, Wilson acknowledged that complete stabilization will require more time. “Merging an airline is an incredibly intricate task due to its operational, regulatory, and international dimensions, as well as the scale of people and locations involved,” he noted.

Building a Customer-Centric Airline

Wilson outlined a clear vision for Air India, emphasizing the need for the airline to be operationally robust, financially stable, and deeply focused on delivering excellent customer experiences. “The airline has to be customer-centric, customer-focused, and customer-obsessed. It has to be operationally and financially robust and it has to have a performance-oriented culture, where excellence is part of the DNA,” he said.

The initial priority is to establish stability within operations, creating a harmonious and productive work environment. “Our primary goal is to ensure stable operations, fostering a comfortable and collaborative environment where everyone is happy, productive, and focused on the future rather than immediate concerns,” he stated. After achieving this, the focus will shift to enhancing customer service across all touchpoints. “From there, the focus shifts to our customers — delivering consistent, high-quality service, whether on board the aircraft or through other channels,” he added.

Vistara’s Influence on the New Air India

Over nearly a decade, Vistara gained widespread recognition for its high standards, earning praise from passengers for its commitment to quality. This legacy will significantly shape the new Air India, as many of Vistara’s practices will be adopted.

For instance, Wilson highlighted that Air India would replicate Vistara’s practice of employing station manager-level officers during every shift at major airports like Delhi and Mumbai. This approach ensures better coordination and enhanced service at key hubs.

Singapore Airlines (SIA), which partnered with Tata Group in the Vistara venture, now holds a 25.1% stake in Air India and has representation on its board. This partnership brings additional expertise to Air India, given SIA’s stellar reputation in the aviation industry.

“In practice, much of SIA’s DNA is already embedded in Vistara, thanks to shared practices and a workforce shaped by its business ethos. Many individuals who have grown within Vistara bring this expertise to Air India, and with my 26 years at Singapore Airlines, I am deeply familiar with their approach as well,” Wilson said. He further explained that SIA’s vested interest in Air India’s success strengthens the collaboration. “For SIA, Air India’s success is directly tied to its own due to their stake. This partnership is poised to evolve in many ways, fostering both friendship and cooperation,” he concluded.

The Tata Group’s focus has shifted to building Air India into a globally competitive airline, leveraging Vistara’s strengths and SIA’s expertise while driving a customer-first approach. With major milestones already achieved, the company aims to refine its operations and establish Air India as a symbol of excellence in the aviation industry.