Air India-Vistara: India’s luxury airline flies into the sunset

“Communication will be a major challenge in the early days, with customers arriving at the airport expecting Vistara flights, only to find Air India branding,” says Ajay Awtaney, editor of Live From A Lounge, an aviation portal. “Air India will need to maintain clear communication for weeks.”

Another key challenge, he notes, is cultural: Vistara’s agile employees may struggle to adjust to Air India’s complex bureaucracy and systems.

But the biggest task for the merged carrier would be offering customers a uniform flying experience.

These are “two airlines with very different service formats are being integrated into one airline. It is going to be a hotchpotch of service formats, cabin formats, branding, and customer experience. It will involve learning and unlearning, and such a process has rarely worked with airlines and is seldom effective,” said Mr Martin.

Still, many believe Vistara had to go – now or some years later.

A legacy brand like Air India, with strong global recognition and ‘India’ imprinted in its identity, wouldn’t have allowed a smaller, more premium subsidiary to overshadow its revival process.

Financially too, it makes little sense for the Tatas to have two loss-making entities compete with one another.

The combined strength of Vistara and Air India could also place the Tatas in a much better position to compete with market leader Indigo.

The unified Air India group (including Air India Express, which completed its merger with the former Air Asia India in October) “will be bigger and better with a fleet size of nearly 300 aircraft, an expanded network and a stronger workforce”, an Air India spokesperson said.

“Getting done with the merger means that Air India grows overnight, and the two teams start cooperating instead of competing. There will never be one right day to merge. Somewhere, a line had to be drawn,” said Mr Awtaney.

But for many Vistara loyalists, its demise leaves a void in India’s skies for a premium, full-service carrier – marking the third such gap after the collapse of Kingfisher Airlines and Jet Airways.

It’s still too early to say if Air India, which often ranks at the bottom of airline surveys, can successfully fill that void.