India’s luxury airline Vistara takes its final flight into the sunset
Indian full-service carrier Vistara will operate its last flight on Monday, marking the end of a nine-year journey. A joint venture between Singapore Airlines and Tata Sons, Vistara is set to merge with Tata-owned Air India, combining forces to create a single, larger entity with an expanded network and fleet.
As part of the merger, all Vistara operations will be absorbed into Air India, including helpdesk kiosks and ticketing offices. The transition of Vistara’s existing passengers and loyalty programs to Air India has been underway for several months.
In a statement, an Air India spokesperson noted, “As part of the merger process, meals, serviceware, and other soft elements have been upgraded to blend elements from both Vistara and Air India.”
While the merger has raised concerns over potential service disruptions, the Tata Group has assured that Vistara’s renowned in-flight experience will be maintained under the new structure.
Known for its high-quality food, impeccable service, and superior cabin experience, Vistara has cultivated a loyal customer base. The decision to phase out the Vistara brand has sparked disappointment among its fans, aviation experts, and branding specialists alike.
Mark Martin, an aviation analyst, argued that the consolidation of Vistara was essentially a move to clear its financial slate. “Air India is essentially being saddled with a loss-making airline in a desperate move,” Martin said. “Mergers are supposed to make airlines stronger, not to cover up financial losses.”
Despite the challenges, both Air India and Vistara have managed to reduce their annual losses by over 50% in the past year, and other operating metrics have also shown improvement. However, the merger process has not been without complications, including pilot shortages, flight cancellations, and a wave of mass sick leaves among Vistara’s crew over new salary alignments with Air India.
In addition, there have been ongoing reports of subpar service on Air India, with viral videos of broken seats and malfunctioning inflight entertainment systems. The Tata Group has announced a $400 million plan to retrofit older aircraft with new interiors and a fresh livery. They’ve also ordered hundreds of new aircraft from Airbus and Boeing, valued in the billions. However, the company’s “turnaround” efforts are still far from complete, and many experts believe the merger will only add to the complexity.
From a branding perspective, the merger also raises questions. Harish Bijoor, a brand strategist, expressed regret over the end of Vistara’s operations, describing it as a “big loss” for the Indian aviation industry. Vistara, he said, had set a “gold standard” for Indian airlines, and Air India would now face the monumental task of replicating and exceeding that level of service.
Bijoor suggested that a better strategy might have been for Air India to operate independently for several years while Vistara continued as a premium sub-brand. “This would have allowed Air India to improve and catch up to Vistara’s standards without losing the unique identity of both brands,” he added.
The operational challenges are also significant. Ajay Awtaney, editor of the aviation portal Live From A Lounge, pointed out that communication will be crucial during the transition. “Passengers may show up expecting Vistara flights, only to find Air India branding, so clear communication will be key,” Awtaney said. Another challenge, he noted, is the cultural shift—Vistara’s agile and customer-focused staff will need to adapt to Air India’s more bureaucratic systems.
Perhaps the biggest challenge for the merged airline will be to offer a consistent and seamless customer experience. “You have two airlines with very different service formats. Integrating them will result in a mishmash of cabin styles, branding, and service quality,” Martin warned. “Such a process has rarely worked effectively in the airline industry.”
Despite these challenges, many believe the merger was inevitable. Air India, with its legacy brand and international recognition, would not have allowed a smaller, more premium subsidiary to overshadow its revival efforts. Financially, it makes little sense for the Tatas to maintain two competing loss-making airlines.
The merger is also seen as a strategic move to better compete with market leader Indigo, with the combined Air India group—including Air India Express, which merged with AirAsia India in October—boasting a fleet of nearly 300 aircraft. The expanded network and workforce are expected to give Air India a stronger competitive edge.
“Getting the merger done allows Air India to grow overnight, and it will shift from competition to cooperation between the two teams,” Awtaney said. “There’s never a perfect time to merge, but this was the right moment to draw a line.”
For many Vistara loyalists, however, the airline’s demise marks the end of an era of premium, full-service air travel in India. The collapse of Vistara now leaves a gap in the market for a high-end carrier, following the fall of Kingfisher Airlines and Jet Airways in recent years.
It remains to be seen whether Air India, often ranked among the lowest in global airline surveys, can successfully fill that gap. But for now, Vistara’s final flight symbolizes the end of a beloved chapter in India’s aviation history.
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