As Singapore Airlines announced its receipt of approvals for foreign direct investment (FDI) into Air India, the final hurdle in the merger of Vistara with Air India was cleared. The Singapore Stock Exchange was informed, and social media teams promptly conveyed the merger news. This was soon followed by formal communication to stakeholders detailing the merger date. On November 12, 2024, a unified airline will begin operations, marking the end of Vistara as a distinct brand. This iconic airline, established as a joint venture between Tata Group and Singapore Airlines, will soon become a part of aviation history.
The journey of Vistara stands in stark contrast to Tata Group’s other aviation venture, AirAsia India. Vistara’s story, which spans 3,595 days, is set to conclude with its merger, similar to the fates of Air Sahara and Air Deccan, which merged with Jet Airways and Kingfisher Airlines, respectively.
A Celebrated Airline
Vistara has garnered significant admiration from passengers, often drawing comparisons to the glory days of Kingfisher Airlines. Throughout its history, the airline witnessed the decline of Jet Airways and strategically took advantage of the situation by acquiring Boeing 737s, which were later used to launch international services. However, this move also resulted in a diverse fleet composition, including three-class, dual-class, and mono-class aircraft, an unusual feature for an airline marketed as a luxury carrier.
Pioneering Innovations
Vistara achieved several firsts in the Indian aviation sector. It was the first airline in India to introduce a Premium Economy class. But that was not the only innovation; the airline also became the first in India to offer a flatbed experience on narrowbody aircraft with the induction of the Airbus A321neo, which was specifically designed for regional international routes.
Additionally, Vistara was the first Indian airline to induct the Boeing 787-9 Dreamliner and the Airbus A321LR. To this day, it remains the only Indian airline to operate these models. Even its competitor, IndiGo, which has ordered the A321XLR, has not yet opted for the A321LR. In a unique tribute to JRD Tata, Vistara introduced a retro livery on one of its aircraft, a nod to the legacy of JRD Tata during a period when Air India was not publicly in the picture for the Tata Group.
Fleet Expansion
In 2018, Vistara placed a significant order for 56 aircraft, which included both Boeing Dreamliners and Airbus narrowbody jets. This strategic move allowed Vistara to become the first Indian airline to transition to an all-modern fleet, composed entirely of the Airbus ‘neo’ family for its narrowbody operations. At one point, Vistara also acquired a few aircraft from the open market, including the Boeing 737NG, previously operated by Jet Airways.
Benefiting from Policy Changes
Vistara was the first airline to capitalize on the National Civil Aviation Policy of 2016, which removed the five-year requirement for airlines to operate internationally. As a result, Vistara commenced its international services in August 2019, just a few months shy of its fifth anniversary, becoming the first airline to benefit from this policy change.
Impressive Passenger Numbers
Since its inception, Vistara has operated over 500,000 flights up until the end of July 2024. By the time it ceases operations in early November 2024, it is projected to complete an additional 30,000 flights. As of July 2024, Vistara was just shy of reaching the seven crore passenger milestone. In its final months, it could potentially serve an additional 50 lakh passengers before its integration with Air India.
Challenges and Missteps
Despite its achievements, Vistara faced several challenges. The airline, which had initially entered the market with a luxurious configuration after extensive research, had to undergo a reconfiguration early in its lifecycle. The initial configuration of 16 Business, 36 Premium Economy, and 96 Economy seats on the Airbus A320 family aircraft was reduced to 8 Business, 24 Premium Economy, and 126 Economy seats. A further reconfiguration added an additional row to the Economy class, bringing the total number of Economy seats to 132 and the total seats on the aircraft to 164. Air India’s three-class seating arrangement for its new planes is based on this configuration, facilitating smoother integration between the two airlines. The reduction in Business class seats by half and Premium Economy seats by one-third during relatively stable economic conditions indicates that Vistara’s initial market estimations may have been overly ambitious.
Perhaps the most significant setback for Vistara has been its inability to turn a profit. While the airline did report operational profits in at least one quarter, it failed to achieve overall profitability during nearly a decade of operations. Founded in 2013 and launching its first flight in 2015, Vistara struggled to break even, despite the same parent company, albeit under a different holding structure, operating Air India.
A Notable Legacy
When Vistara was poised to start widebody operations, the pandemic struck, resulting in the airline operating under the air bubble arrangements. This enabled Vistara to secure slots at London Heathrow, an opportunity that would have been challenging under normal circumstances. Overall, Vistara became a preferred partner for foreign carriers looking to collaborate. If there is one legacy that Vistara will leave behind, it is the revival of quality in-flight dining in Indian aviation, a market where IndiGo dominates with over 60% market share but does not offer hot meals. Whether Air India will continue this legacy remains to be seen in 2025.
As Vistara prepares to fade into the annals of aviation history, its contributions to the Indian skies—ranging from pioneering in-flight experiences to expanding international connectivity—will not be forgotten. The merger with Air India marks the end of an era but also the beginning of a new chapter for both airlines.
