Tata-Owned Air India And Vistara Merger Process Begins Today

 Tata Sons & Singapore Airlines have announced the merger of Air India and Vistara. Human resources integration and regulatory compliance are in process.

The senior executives from Air India and Vistara and consulting company Deloitte have started the process of merging the two airlines. 

AZB Partners has been hired to ensure regulatory and legal compliance. The competition authorities in the nations where both airlines operate must approve the merger.

A merger between Air India and Vistara was previously announced. SIA would invest Rs 2,059 crore in Air India as terms of the merger with Air India, which the Tata Group acquired in January. After the deal is finished, SIA will own 25.1% of Air India.

Since Air India has hired many former Vistara workers and, more crucially, because CEO and MD Campbell Wilson have experience working with both SIA and its low-cost carrier Scoot, the merger between the two companies is likely to go well.

Senior officials from both airlines have started the workforce integration process with the aid of consulting company Deloitte as they prepare for their merger next year. 

Vistara’s non-flying employees are being evaluated for leadership positions using a procedure known as the Hogan Test. 

The best fit among senior to mid-level executives will be kept for the post after interviews with consulting firms and internal teams, the article quotes a person familiar with the situation as saying, Other contenders will be given a different function if available.

Bringing the pilots of the two airlines together to run the assets of the merged airline while also taking the seniority of the cockpit crew into consideration is another challenging problem to solve. 

According to reports, some Vistara pilots are concerned about how the merger may affect their seniority as they join a new airline.

Important organizations like the Central Bank of India, the Ministry of Civil Aviation, and the DGCA will need to approve the merger. 

While Vistara is a joint venture between the Tata Group and Singapore Airlines, the approval of the competition authorities of both India and Singapore will also be required.

The merger must be completed by March 2024. In an effort to establish itself as a major player internationally, Air India has made a massive order with Boeing and Airbus for 470 aircraft.