16 October 2024 | N Chandrasekaran
This week’s merger between Air India Limited (AI) and Vistara is an important milestone in our commitment to transform AI into a world-class global airline with an Indian heart.
This merger, on the back of our Air Asia and Air India Express merger, has brought together four airlines to create one integrated airline group. We have much to look forward to. From its pre-privatization size, the fleet has grown over 2.5X, and its 300 aircraft carry nearly 200,000 passengers across 100 global destinations every day. Through its partners, the fleet offers worldwide connectivity to over 800 destinations.
At the same time, it is important to acknowledge that a merger is undoubtedly a time of change—distinct cultures are put together to create something new and lasting. Such mergers take time to play out. We have moved quickly, completing the process in two years, while keeping our eye on the ultimate goal: to realise AI’s potential and turn it into a world-class global airline. 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.
While this happens, I am clear that Vistara will continue to deliver the service experience it is known for, while bringing to AI some of its best practices. Customers will continue to experience Vistara’s in-flight service and the cabin crew that they are accustomed to.
That brings me to AI, our national carrier. Two years ago, when we took over, AI 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 AI’s functioning from the ground up. Change had to be meaningful, not just in matters of appearance. In the last two years, we have moved swiftly to invest in people, processes, systems and technology. New staff and planes are already in service, and more are on the way.
The AI people will fly will be safer, its IT infrastructure will be stronger, and its personnel will reflect the next generation. We have created South Asia’s largest training academy for pilots, cabin crew, and staff. We are establishing a state-of-the-art flying academy for cadet pilots—a first for an Indian airline—and ground has been broken for a facility that will service our growing fleet of wide-body and narrow-body aircraft. The airline we are strengthening today will be ready for India’s coming aviation revolution. There is still more work to do, and we are bringing Vistara’s best qualities to this merger.
I am optimistic about the future for AI. AI’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 AI will take flight. 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.
N Chandrasekaran
Chairman, Tata Sons and Chairman, Air India
