On November 12, 2023, Indian airline Vistara carried out its final flight under its own brand, officially marking the end of its independent operations before its integration into Air India. Vistara, launched in January 2015 as a full-service carrier by Singapore Airlines and the Tata Group, has flown for nearly a decade, establishing both domestic and international routes. From this point forward, all Vistara flights will operate under the Air India name, bringing an end to its distinct branding.
In a report from FlightGlobal, this merger is a significant development in the restructuring of Tata’s airline holdings, which aims to consolidate its assets under Air India’s expanding umbrella. In a related move, AirAsia India was recently folded into Air India Express, aligning Tata’s low-cost carriers under one brand. With the completion of the Vistara merger, Singapore Airlines will now hold a 25% stake in Air India.
Vistara has built an extensive fleet and network during its years of service. Its fleet of 70 aircraft includes 53 Airbus A320neos, 10 Airbus A321neos, and seven Boeing 787-9s, used to serve both domestic and international destinations. The carrier’s international network includes major global hubs such as Frankfurt, London Heathrow, and Paris Charles de Gaulle, in addition to several destinations across the Middle East and Asia.
With this merger, Air India will absorb Vistara’s fleet, further increasing its capacity in both the domestic and international markets. Air India, which was acquired by the Tata Group following its privatization, will use this expansion to improve its position in the global aviation market. This integration will help Air India strengthen its premium offerings with Vistara’s extensive routes and fleet.
Market Position and Future of Indian Aviation
Vistara achieved a notable position in India’s competitive airline market. Data from the Indian civil aviation regulator reveals that Vistara accounted for about 9% of international air traffic among Indian carriers in the second quarter of this year and around 10% of domestic passenger traffic in the third quarter. With Vistara’s contributions now added to Air India, the latter will further bolster its presence as the country’s sole full-service airline with a widebody fleet.
The integration comes as India’s aviation landscape continues to evolve. Following Vistara’s merger into Air India, Air India will stand as the only full-service, widebody carrier in India, especially as Jet Airways, once a prominent competitor, remains grounded. Jet Airways, which suspended operations in 2019, recently faced a court-ordered liquidation, ruling out a return to the skies.
Meanwhile, the budget airline IndiGo, known primarily for its domestic dominance, has announced its own expansion plans. IndiGo has placed an order for up to 100 Airbus A350 aircraft, positioning it to begin widebody operations, which will increase competition in the international market.
This final flight marks a new chapter for Air India as it absorbs Vistara operations and fleet. The integration strengthens Air India’s ability to provide diverse domestic and international routes, as well as high-quality service to its expanding customer base.
