Vistara’s Final Flight: Airline Merges with Air India

In a significant shift for Indian aviation, Vistara, the premium full-service airline, operates its final flights today before merging with Air India. The merger, initiated by the Tata Group, brings together two of India’s leading airlines and establishes Air India as the country’s sole full-service carrier. Vistara, which gained a loyal following for its high-quality service since its launch in 2015, will now be part of a consolidated Air India, with Singapore Airlines retaining a 25.1% stake in the entity.

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The merger represents a strategic move by Tata Group to streamline its airline portfolio, combining the expertise and resources of both Air India and Vistara. Vistara was initially formed as a joint venture between Tata Group, holding a 51% stake, and Singapore Airlines, which held the remaining 49%. The airline gained popularity for its premium service, offering a unique blend of comfort and quality to domestic and international passengers.

More than 115,000 passengers holding Vistara tickets for flights scheduled after today will fly under the Air India banner. Although the branding will shift to Air India, the Tata Group has assured passengers that the “Vistara experience” will largely remain unchanged, maintaining the high standards that Vistara’s customers have come to expect.

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The inception of Vistara was made possible by a policy change in 2012 under the UPA administration, allowing foreign airlines to hold up to 49% in domestic carriers. This regulatory shift led to significant partnerships, such as Jet Airways with Etihad and the formation of new entrants like Vistara and AirAsia India, each reshaping India’s aviation market.

Over the past decade, India’s airline industry has experienced notable turbulence, with airlines like Kingfisher and Air Sahara ceasing operations, and Jet Airways halting flights in 2019 amid financial struggles. With Vistara’s farewell, Air India assumes a new chapter, bringing with it Vistara’s legacy of premium service, as Tata Group moves forward with its vision for Indian aviation.