Indian full-service airline Vistara will fly its final journey on Monday, concluding nine years of operations.
Formed as a joint venture between Singapore Airlines and Tata Sons, Vistara will now merge with Tata-owned Air India, creating a single airline with a larger network and fleet. All of Vistara’s services, including helpdesks and ticket offices, will be transferred to Air India. The transition of existing bookings and loyalty programs has been underway for several months.
As part of the merger, aspects of Vistara’s in-flight offerings, such as meals and service items, have been upgraded to incorporate features from both Vistara and Air India, according to an Air India spokesperson. Despite concerns that the merger could compromise service quality, Tata has assured that Vistara’s renowned in-flight experience will remain consistent.
Known for high ratings in food, service, and cabin quality, Vistara developed a loyal following, and the brand’s retirement has drawn criticism from fans and aviation experts. The consolidation was primarily aimed at cleaning Vistara’s financials and eliminating losses, says aviation analyst Mark Martin, who added that Air India’s merger with Vistara seemed more like an attempt to absorb a struggling airline rather than an empowerment strategy.
Both Air India and Vistara have reduced annual losses by over half in the past year and improved key operating metrics, though the merger process has faced difficulties, including pilot shortages, flight cancellations, and complaints over service standards. Tata has committed $400 million to refurbish older aircraft and introduced a new livery, alongside orders for hundreds of new Airbus and Boeing planes.
Brand strategy expert Harish Bijoor remarked on the emotional loss of Vistara, which he considered a “gold standard for Indian aviation.” He suggested a more gradual approach where Air India could improve its standards while retaining the Vistara brand to maintain its distinct reputation.
The merger presents operational challenges. Ajay Awtaney, editor of Live From A Lounge, highlighted that customer communication will be crucial as passengers may expect Vistara but encounter Air India branding. Adjusting Vistara’s agile workforce to Air India’s bureaucratic culture will also be a test, along with aligning the two airlines’ service formats into a consistent customer experience.
Ultimately, some experts believe Vistara’s end was inevitable. A legacy brand like Air India with global recognition may have struggled to accommodate a smaller, premium subsidiary during its own revival. Financially, it also made little sense for Tata to operate two competing, loss-making entities.
The unified Air India group, now including Air India Express, which recently merged with AirAsia India, will have nearly 300 aircraft, a larger network, and a strengthened workforce. This scale could help Tata compete more effectively with market leader Indigo.
However, for many loyal Vistara customers, the merger leaves a gap in the skies for a high-end full-service carrier—a void last seen after the collapses of Kingfisher Airlines and Jet Airways. Whether Air India can effectively fill that gap remains to be seen.
