Carrier Begins Controversial Merger With Air India

Full-service Indian carrier Vistara recently took its last independent flight before beginning joint operations with Air India. The merger has sparked controversy due to Air India’s relatively low service standards.

The final flight, UK782, was given a proper sendoff by ground staff at Biju Patnaik International Airport (BBI) in Bhubaneswar, India. It took around a two and a half hour journey to land at  Indira Gandhi International Airport (IGI) in New Delhi.

Vistara and Tata-owned Air India will now share a larger network and fleet. Vistara operations, including ticketing, offices, and loyalty programs, are being transferred to Air India.

Over its nine years in service, Vistara has built a reputation for quality in the industry. It has accumulated impressively high ratings in food, service, and general cabin experience. Air India, however, cannot say the same.

Several viral videos have surfaced, showing complaints of broken seats and dysfunctional passenger entertainment devices. A customer was even given a $6,300 refund after posting on social media about his “worst first-class cabin” experience.

A large part of this issue is Air India’s fleet, which is in desperate need of an update. Luckily, it will soon be receiving $400 million worth of upgrades and retrofits, plus new Airbus and Boeing airliners.

With this revamp still being in the early stages, analysts have debated whether tossing a merger into the mix is a good idea. This is especially concerning with Vistara’s “gold standard” service, stated brand strategy specialist Harish Bijoor.

“It is a big loss for the industry,” Bijoor added. It would be nearly impossible for Air India to “copy, paste and exceed” Viastra’s reputation.

Though neither carrier was particularly successful before, the merger could make the Tatas more competitive with the market leader, Indigo. The unified pair “will be bigger and better with a fleet size of nearly 300 aircraft, an expanded network and a stronger workforce”, explained an Air India representative.

FMI: www.airindia.com