In an exclusive conversation with Business Today, the Air India CEO Campbell Wilson outlined what would likely happen to Vistara’s resources, especially its pilots and cabin crew members.
Air India’s Chief Executive Officer Campbell Wilson announced on Monday that the Tata Group plans on scrapping the brand Vistara, another airline owned by the Tata group of companies, after merging it with Air India. In an exclusive conversation with Business Today, the CEO of the airline outlined what would likely happen to Vistara’s resources, especially its pilots and cabin crew members.
Wilson, who was brought aboard Air India in 2022, told Business Today that the group plans on accommodating Vistara employees in the new full-service airline resulting from the merger.
“While planning for the merger of Vistara into Air India, we want to ensure that everyone in the group has a position and future,” he explained.
Vistara CEO Vinod Kannan announced earlier last year that by the end of the year 2022, the airline plans on adding 1000 people to its 4000-strong workforce bringing the total headcount to 5000. The airline has a fleet of around 55 aircraft.
Moreover, Air India’s headcount is around 11,000 people as per an announcement by the company in August last year. When Tata took over Air India, it was reported that around 4500 people applied for voluntary retirement. Wilson said during a media interaction on Monday that 1600 employees were granted leave from the company under the voluntary retirement policy.
Nonetheless, the CEO also did not let go off the possibility of external hiring in the newly merged entity. He said, “We want to get external people in where we need them but also need to accommodate existing people within the group.”
Furthermore, in the press conference, CEO Wilson also outlined the plans for Air India’s merger with Vistara. The CEO said that the merged airline would be a full-service airline and experts and analysts believe that this full-service airline by the Tata Group plans on competing with its gulf counterparts, including Etihad Airlines, Emirates Airlines, and Qatar Airline.
“The intention is to have one full-service airline and one low-cost airline in the group. The full-service airline will be an amalgam of Air India and Vistara,” he added.
Wilson also shared outlined the progress of the merger. He noted that the merger of Air India and Vistara is in its first phase. The next phase would be the Directorate General of Civil Aviation’s (DGCA)’ approval for the merger, followed by the Competition Commission of India’s (CCI) nod.
The CEO also justified why the Vistara brand will be scrapped. He noted that although the brand has decent recognition in India, the Air India brand has better recognition globally and would be a better fit for a full-service airline that operates globally.
“Vistara has a very strong recognition in the Indian market but if you look outside the Indian market, clearly Air India is much more recognised and has a 90-year history… the future full-service carrier will be called Air India,” the CEO said while addressing the press conference.
He also clarified that some of Vistara’s branding will be carried onto the new full-service airline.
He explained, “We would like to retain and celebrate some of the Vistara heritage in that new manifestation.”
Earlier this month Air India announced that it would be purchasing 470 aircraft from Boeing and Airbus, and the list price of these air carriers is $70 billion. The company noted that they would be using a mix of “internal cash flow, equity, and the sale and leaseback of aircraft” to finance the deal.