Air India, Vistara lay out merger roadmap, staff transition from June

Air India and Vistara have laid out an integration roadmap for employees as the two airlines plan to complete the merger process by year end.

Employee transition from Vistara to Air India will begin in a phased manner from June with people integration being the key focus for both the airlines, Air India CEO Campbell Wilson and Vistara CEO Vinod Kannan said in a joint town hall on Monday.

The integrated airline will have a ratio of 12 Air India employees for 5 Vistara staff. Managerial roles are being increased by 1.5 times to support career growth with increased opportunities via group operating model. The airline is already ramping up its fleet, expanding its network and making investments to make India a global aviation hub.

Average team size in the merged entity will be 7-8 for better manager-team engagement. Staff will be told about their new roles and grades by month end.

Merit-driven approach

Tata Sons and Singapore Airlines announced plans to merge the two airlines in November 2022. While National Company Law Tribunal order is awaited, application has been filed for Singapore Airlines’ investment in the merged entity. The operational process harmonisation is also progressing well, the two CEOs said in their presentation.

The two CEOs also shared details of staff integration with 60 non-flying staff from Vistara deputed to Air India to accelerate integration. A three step process is being followed for people integration and 7,000 people have been assessed for talent fitment.

While there has been disquiet especially among Vistara staffers about their roles in the merged entity, the CEOs said an unbiased and merit-driven approach is being followed for fitment. Current work roles and experience has been factored for identifying best talent for each role, they said.