Vistara-Air India 'merged entity...': 'Process complete' on THIS front - Vistara CEO

Vistara-Air India 'merged entity...': 'Process complete' on THIS front - Vistara CEO

Vistara employees can expect clarity regarding their roles within the integrated entity of Air India by May and June, as CEO Vinod Kannan communicated to them on Saturday. The Tata group, having acquired Air India two years ago as part of their aviation business restructuring, is now merging Vistara into the national carrier.

Authored by:ET Now Digital

Updated Apr 14, 2024 | 06:17 PM IST

Vistara employees can expect clarity regarding their roles within the integrated entity of Air India by May and June, as CEO Vinod Kannan communicated to them on Saturday. The Tata group, having acquired Air India two years ago as part of their aviation business restructuring, is now merging Vistara into the national carrier.

Kannan assured employees that the leadership teams are actively working on finalizing the organogram for the merged entity, with the process nearing completion for most verticals. He emphasized the aim to conclude this process by the end of the month, providing employees with a clearer picture of their future roles.

As per Economic Times report, however, the merger process has faced challenges, notably from pilots, particularly first officers, who are apprehensive about potential salary impacts from the new structure. This, combined with crew availability constraints, resulted in over 100 flight cancellations and a 10% reduction in flights for April, despite the airline operating around 350 flights daily.

Additionally, several senior management officials have resigned due to uncertainty surrounding their roles in the merged entity.

Acknowledging the concerns among staff, Kannan reassured them that every Vistara employee would find a relevant and suitable role in the merged organization. To address specific concerns, the airline plans to organize town hall meetings with pilots and cabin crews in the coming week, focusing on issues such as seniority and potential changes to contracts post-merger.

Despite the challenges, Kannan expressed confidence in the airline's operations, noting improvements in on-time performance from 50% on April 1 to 89% on April 9, following the stabilization of operations due to planned flight cancellations.

"We are already on the right track, and I am confident that this will be soon behind us. We have been operating a trusted and loved airline for the last decade, and I look forward to all your support to ensure that this remains the case till the merger," Kannan stated in his communication to employees.