The merger of Air India and Vistara will create world class airline, Tata Sons chairman N Chandrasekaran said on Thursday.
" From its pre-privatization size, the fleet has grown over 2.5X, and its 300 aircraft carry nearly 200,000 passengers across 100 global destinations every day. Through its partners, the fleet offers worldwide connectivity to over 800 destinations, ," Chabdrasekaran said in a LinkedIn post.
As part of the consolidation of its airline business, Tata Sons has merged Vistara into Air India to create a full service airline while AirAsia India has been integrated into Air India Express to compete in the no frills segment.
Chabdrasekaran though indicated that the merger will face teething issues.
" it is important to acknowledge that a merger is undoubtedly a time of change—distinct cultures are put together to create something new and lasting. Such mergers take time to play out," he said.
A day after the merger, barely 3 out of 10 flights of the Air India group flew on time on Wednesday, data from Ministry of Civil Aviation shows.
"Different parts of the business were at different points of maturity when the merger commenced, so they will take time to fully align," Chabdrasekaran noted.
The salt-to-steel conglomerate incurred a loss of over Rs 6,300 crore in its airline business and hopes that the consolidation will help to make it profitable by lveraging synergies, eke out efficiencies and reduce duplication.
Chandrasekaran assured that the Vistara service experience will continue even after the merger, and will bring some of its best practices to Air India as well. "Customers will continue to experience Vistara’s in-flight service and the cabin crew that they are accustomed to," he said.
Tata Sons chairman recalled that when the group took over the operations, Air India was in decline for many systemic reasons. The airline's turnaround could not have been solved by mere allocation of resources, he said, rather it needed a rethink on every aspect of AI. Chandrasekaran said more measures are planned for greater efficiency.
"Change had to be meaningful, not just in matters of appearance. In the last 2 years, we have moved swiftly to invest in people, processes, systems and technology. New staff and planes are already in service, and more are on the way," he said.
" From its pre-privatization size, the fleet has grown over 2.5X, and its 300 aircraft carry nearly 200,000 passengers across 100 global destinations every day. Through its partners, the fleet offers worldwide connectivity to over 800 destinations, ," Chabdrasekaran said in a LinkedIn post.
As part of the consolidation of its airline business, Tata Sons has merged Vistara into Air India to create a full service airline while AirAsia India has been integrated into Air India Express to compete in the no frills segment.
Chabdrasekaran though indicated that the merger will face teething issues.
" it is important to acknowledge that a merger is undoubtedly a time of change—distinct cultures are put together to create something new and lasting. Such mergers take time to play out," he said.
A day after the merger, barely 3 out of 10 flights of the Air India group flew on time on Wednesday, data from Ministry of Civil Aviation shows.
"Different parts of the business were at different points of maturity when the merger commenced, so they will take time to fully align," Chabdrasekaran noted.
The salt-to-steel conglomerate incurred a loss of over Rs 6,300 crore in its airline business and hopes that the consolidation will help to make it profitable by lveraging synergies, eke out efficiencies and reduce duplication.
Chandrasekaran assured that the Vistara service experience will continue even after the merger, and will bring some of its best practices to Air India as well. "Customers will continue to experience Vistara’s in-flight service and the cabin crew that they are accustomed to," he said.
Tata Sons chairman recalled that when the group took over the operations, Air India was in decline for many systemic reasons. The airline's turnaround could not have been solved by mere allocation of resources, he said, rather it needed a rethink on every aspect of AI. Chandrasekaran said more measures are planned for greater efficiency.
"Change had to be meaningful, not just in matters of appearance. In the last 2 years, we have moved swiftly to invest in people, processes, systems and technology. New staff and planes are already in service, and more are on the way," he said.
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