DGCA Clears Deck for Tata Group Airlines’ Merger

On Monday, the Tata Group received approval from the aviation regulator DGCA to merge Vistara into Air India and former AirAsia India into AI Express. The only remaining approval needed to complete the integration by the end of the year is for foreign investment by partner Singapore Airlines into AI. With this, the group has stated that it has “concluded the harmonization of operating procedures across its key functions.” Air India, with Vistara merged into it, will operate as a full-service carrier, while AI Express, with the other airline merged into it, will serve as its low-cost arm.

STATEMENT BY THE CEO

AI CEO-MD Campbell Wilson stated, “This is an important milestone in the merger of the Tata Group airlines, and we are grateful for the support received from the Ministry of Civil Aviation in terms of timely clearances for the merger process.” Wilson also mentioned that DGCA has guided their teams with a safety-first change management approach, aligning with the safety-first priorities of the Tata Group.

The DGAC nod was mandatory as pilots must undergo crossover training when changing between companies or aircraft types. While SIA has a 49 percent stake in Vistara, it will have a 25.1 percent stake in Air India after the merger.