Highlights

  • Air India wants to capture 30% share of domestic traffic
  • Vistara has 55 aircraft and the number will increase to 60
  • IndiGo is a strong competitor for Air India on certain routes

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Air India to expand its wings; will it merge with Vistara?

Currently, the Tata Group operates four airlines — Air India, Air India Express, AirAsia India and Vistara. Air India and Vistara operate on both domestic and international routes

As Tata-Owned Air India wants to capture 30% share of domestic traffic, there is a buzz of its merger with Vistara, a joint venture between Tata Sons and Singapore Airlines.

Air India, which plans to induct 30 new wide-body and narrow-body aircraft, said the plan is code-named Vihaan.AI. The airline has also said about getting back its grounded aircraft in service.

On the other side, Vistara has 55 aircraft and the number will increase to 60 in the upcoming months. In the winter schedule starting from October end, Vistara will add more flights to Europe as it has planned increasing capacity to Frankfurt and Paris.

While a start has been made on the transformation plan, key challenges remain. Air India is the market leader on long international routes that go as far as the US. But, IndiGo is also planning to become a significant player in that segment. It would become a strong competitor for Air India on certain routes.

Whether or not Air India becomes the Maharaja of Indian skies again will depend on its execution. It will be intresting to see if Air India achieve the goal it has set out for itself?

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