Campbell Wilson: CCI’s Request for Additional Information on Air India-Vistara Merger is a Routine and Crucial Evaluation Step

Air India’s CEO, Campbell Wilson, expressed his support for the Competition Commission’s request for additional information regarding the proposed merger between Air India and Vistara. Wilson stated that this request is a routine and vital aspect of the evaluation process. The merger was initially announced in November of last year, and regulatory approval was sought in April of this year. According to competition law, the regulator has the authority to conduct a thorough investigation when there are concerns about potential anti-competitive practices in a merger or acquisition.

In his weekly message on Friday, Wilson acknowledged the Competition Commission’s request and emphasized its significance in the evaluation process. He reassured stakeholders that the airline welcomes this request as a normal part of the procedure. Meanwhile, Air India is also making progress in integrating its low-cost carriers, with the merger of Air India Express and AIX Connect (formerly known as AirAsia India) currently underway.

Wilson also mentioned that there is progress being made towards a future scenario where the Air India group will have a single, significantly larger full-service carrier and a single low-cost airline, both operating with aligned practices, optimized systems, and enhanced career prospects across the entire merged entity.

The Tata Group consists of two full-service carriers, Vistara, and Air India, with Singapore Airlines holding a 49 percent stake in Vistara.

The merger of Air India and Vistara

In November 2022, the Tata Group announced the merger of Vistara and Air India. As part of the deal, Singapore Airlines will also acquire a 25.1 percent stake in Air India.

Upon completion of the merger, Air India will become the largest international carrier in the country and the second-largest domestic airline.

Additionally, Air India is exploring the introduction of premium economy seats in its future aircraft deliveries. Currently, these seats are only available on ultra-long-haul flights.

“We recently had the privilege of spending several hours with Mr. Ratan Tata and our Chairman, Mr. Chandrasekaran, as we reviewed potential ‘premium cabin’ seat options for our upcoming aircraft. The personal engagement and insights from these two influential stakeholders were truly inspiring, and the possibilities they discussed are incredibly exciting,” he expressed.

Air India is also undergoing a comprehensive overhaul of its airline operations, which includes the introduction of a new organizational structure. In this transformative phase, the aim is to transition from a public sector unit (PSU) setup to a private sector model.

Additionally, the objective is to create a unified grading and compensation framework for both existing and new Air India employees, while also laying the foundation for potential integration with Vistara. According to Wilson, this endeavor is a complex undertaking that requires careful planning and execution. It is worth noting that the Tata Group assumed control of Air India, which was grappling with financial losses, in January of the previous year.

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