Tata Sons Chairman N Chandrasekaran Emphasizes Air India Transformation Following Vistara Merger

Tata Sons Chairman N Chandrasekaran announced on Thursday that the best attributes of Vistara are being integrated into Air India as part of the airline’s transformation journey. Two years after the Tatas took over Air India, Chandrasekaran acknowledged the systemic challenges that had plagued the airline but expressed confidence in meeting the “sky-high expectations” of customers.

“We are fully aware that expectations for the new Air India are sky high. We expect nothing less, and we expect to deliver nothing less,” Chandrasekaran said, asserting that the merged entity will be well-prepared for India’s anticipated aviation boom.

The long-anticipated merger of Vistara with Air India was completed on November 12, with Singapore Airlines acquiring a 25.1% stake in the enlarged Air India. Vistara was previously co-owned by Tata Group and Singapore Airlines.

Chandrasekaran described the merger as a significant milestone in the journey to transform Air India into a world-class global airline. He noted, “Given our ambitions, this merger should be seen as part of a journey. Different parts of the business were at different points of maturity when the merger commenced, so they will take time to fully align.”

Acknowledging the substantial effort still required, he emphasized that the integration process has been designed to incorporate Vistara’s highly regarded service quality into Air India’s operations. Chandrasekaran expressed optimism about Air India’s future, highlighting the company’s swift action in achieving the merger in just two years.

Amid some customer concerns regarding whether Vistara’s premium in-flight services would persist post-merger, assurances have been given that the “Vistara in-flight experience is not going away.” Chandrasekaran also underscored the airline’s commitment to enhancing Air India’s overall services.

The merger, he stated, symbolizes the group’s broader commitment to revitalize Air India. “This merger is an important milestone in our commitment to transform Air India into a world-class global airline with an Indian heart,” Chandrasekaran said.

He elaborated on the complexity of the transformation process, noting that Air India’s revival demanded more than financial investment. “Two years ago, when we took over, Air India was in decline for a number of systemic reasons. The turnaround it needed could not be solved simply by the allocation of resources, but by rethinking every aspect of Air India’s functioning from the ground up,” he explained.

Chandrasekaran highlighted the transformative measures taken over the past two years, including investments in personnel, technology, and operational systems. He emphasized that the changes were designed to be comprehensive, addressing both functionality and service quality.

“This merger, on the back of our AirAsia and Air India Express merger, has brought together four airlines to create one integrated airline group. We have much to look forward to,” he remarked.

Since the Tata Group’s acquisition of Air India in January 2022, the airline’s fleet size has more than doubled. “From its pre-privatisation size, the fleet has grown over 2.5X, and its 300 aircraft carry nearly 200,000 passengers across 100 global destinations every day,” Chandrasekaran noted.

The merger marks a major consolidation in the rapidly expanding Indian aviation market. The combined entity, partly owned by Singapore Airlines, now serves over 1,20,000 passengers daily and connects to more than 90 destinations worldwide.

Chandrasekaran expressed excitement about Air India’s future, particularly with the addition of new aircraft. “Air India’s new Airbus A350, which now flies to London and New York, gives us a glimpse of the future. As more new aircraft are delivered, and the legacy fleet is completely refitted, a new Air India will take flight,” he shared.

He also discussed the Tata Group’s historical connection to aviation. The company’s association dates back to the 1930s, when Jehangir Ratanji Dadabhoy (JRD) Tata established Tata Airlines in 1932. By 1946, Tata Airlines had been renamed Air India, and in 1953, the airline was nationalized.

Reflecting on the transformative journey ahead, Chandrasekaran emphasized that Air India is being positioned to leverage the growth potential of India’s aviation sector. “The airline we are strengthening today will be ready for India’s coming aviation revolution,” he said.

With the integration of Vistara into Air India, Tata Sons has consolidated its aviation business into a single entity. This includes the earlier merger of AirAsia India with Air India Express. The streamlined structure is expected to bolster the group’s ability to compete on a global scale.

Chandrasekaran acknowledged the challenges inherent in mergers but expressed confidence in the group’s ability to overcome them. “Mergers take time to play out, and we have moved quickly, completing the process in two years while keeping our eye on the ultimate goal: to realize Air India’s potential and turn it into a world-class global airline,” he stated.

The integration of Vistara’s premium services, coupled with Air India’s ambitious growth plans, signals a new chapter for the Tata Group in the aviation industry. Chandrasekaran’s leadership underscores the group’s commitment to building an airline that blends global standards with Indian hospitality.