The anticipated merger for Vistara has been made official. Vistara was at its last legs in its current form, with operations likely to shut down on November 12, 2024. Even though Geeks have passionately appreciated the show, the merger has become a reality.
Some of the new changes, such as the Air India branding, will slowly and gradually start appearing at the airport counters and on the digital media, but the changes in the aircraft livery will take time and will hardly be seen immediately. Brand Vistara will always remain there, but an Air India makeover is already on the cards.
The combination proved essential after IndiGo got the contract to acquire Vistara’s parent company, SIA, in November 2022. While IndiGo had managed to maintain operational scalability, Vistara had been facing issues of operational profitability, and as such, its continued existence became more precarious in a volatile market still reeling from the effects of the pandemic.
Unfortunately, Air India has had objectives such as securing a 30% market share, which could only be realized under the merger with Vistara. Still, some issues are raised regarding the constant delivery of services, especially to the premium class, as Air India’s growth continues.
There has been some talk of a premium subsidiary. The problem is that market conditions and, accordingly, brand positioning create certain nuances in this regard. Air India’s organizational history puts it off the path of adopting a lower-tier image, and the economic need for integration discourages competition between two weak players.
Now, questions arise regarding Vistara’s capability to grow as an independent entity during such change, let alone with the added issues brought upon by the pandemic. The future now remains for Air India as it tries to peer and recapture its position within the aviation market.
