Air India Emerges as India's Only Full-Service Airline with Vistara Merger

Air India Emerges as India's Only Full-Service Airline with Vistara Merger

By Nithyakala Neelakandan

Published on November 13, 2024

India’s aviation landscape witnesses a major shift as Vistara Airlines operates its final flight, merging with Air India starting November 12. With Vistara’s departure, Air India becomes the sole full-service airline in India, marking a new era in Indian skies and reducing the number of full-service carriers after several similar operations exited the market over the past 17 years.

Vistara, a collaboration between Tata Group and Singapore Airlines, officially announced its merger with Air India in November 2022 as part of Tata’s strategy to consolidate its aviation assets. Singapore Airlines, which previously held a 49% stake in Vistara, now holds 25.1% in the newly expanded Air India entity. This shift signals the end of Vistara’s unique identity, which had distinguished itself with its high service standards, gaining a loyal following among travelers in both domestic and international markets.

A full-service airline typically offers enhanced comfort, including meals, in the ticket price. In contrast, low-cost carriers focus on affordability, often using single-type aircraft for cost efficiency and prioritizing route-specific profitability. India’s skies are mainly dominated by budget airlines, with IndiGo leading the way, even as it recently introduced a business class on select routes. 

Vistara’s final day of operations was marked with emotional farewells from passengers and staff alike. Social media was abuzz with tributes from passengers celebrating their experiences aboard Vistara. One user reflected on Vistara’s “new feeling” in travel, while another noted the crew’s nostalgia as they played the Bollywood hit “Kal Ho Na Ho” on the airline’s final flight from Goa to Bengaluru.

Air India, committed to retaining Vistara’s service standards, has introduced several measures to assist passengers during the transition. At airports, Air India staff in “How may I assist you?” branded shirts are stationed to help guide passengers holding Vistara tickets. Over the past few months, passengers with booked Vistara flights have been gradually migrated to Air India, with Vistara’s loyalty program integrated into Air India’s, offering an expanded network of benefits.

The unified Air India entity will manage over 200 aircraft, servicing 90 domestic and international routes. Its narrowbody and widebody fleets are being updated, with the recent addition of six Airbus A350s now flying key international routes such as Delhi to London and Delhi to New York. As Vistara joins Air India’s fleet, its aircraft will adopt Air India’s new four-digit flight code starting with “2,” indicating the airline’s expanded identity.


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