India's luxury airline Vistara flies into the sunset

Vistara, a well-known luxury airline in India, is set to operate its final flight on Monday, marking the end of its nine-year journey. This airline was a collaboration between Singapore Airlines and Tata Sons, and it will now merge with Air India, which is also owned by Tata. As a result of this merger, Vistara will cease to exist as a separate entity, and all its operations, including customer service and ticketing, will be taken over by Air India. The transition has been in progress for several months, with efforts to transfer passengers who have existing Vistara bookings and loyalty programs to Air India. An Air India representative stated that they are enhancing the quality of meals and service items to blend the best features of both airlines. Despite concerns that the merger might lead to a decline in service quality, the Tatas have assured customers that the in-flight experience will remain consistent. Vistara has earned a reputation for its excellent food, service, and cabin comfort, and many of its loyal customers are disappointed by the decision to retire the brand. Critics, including aviation analysts and branding experts, have expressed their discontent with the merger, arguing that it was primarily a financial move to address Vistara's losses. Mark Martin, an aviation analyst, commented that Air India is essentially taking on a struggling airline, which he believes is not the right approach. He emphasized that mergers should aim to strengthen airlines rather than simply cover up financial losses. Nevertheless, it is worth noting that both Air India and Vistara have managed to reduce their annual losses significantly over the past year, and some operational metrics have shown improvement. However, the merger process has not been without its challenges. There have been significant issues, including pilot shortages that have resulted in numerous flight cancellations, and Vistara crew members have taken mass sick leave due to dissatisfaction with proposed changes to their salary structures. Additionally, Air India has faced criticism for its service quality, with viral videos showcasing broken seats and malfunctioning in-flight entertainment systems. The discontinuation of Vistara leaves a notable gap in the Indian aviation market for a premium, full-service airline. The Tatas have announced a substantial investment of $400 million to upgrade and refurbish the interiors of their older aircraft, along with a new livery. They have also placed orders for hundreds of new Airbus and Boeing planes, amounting to billions of dollars, to enhance their offerings. However, experts like Mark Martin believe that the turnaround is still incomplete and fraught with difficulties. The merger complicates matters further, as it presents branding challenges. Harish Bijoor, a brand strategy expert, expressed his emotional response to the end of Vistara, which he described as having set a 'gold standard' for Indian aviation. He stated that it is a significant loss for the industry and that Air India will face a monumental task in replicating and exceeding the high standards established by Vistara, given that it is a much smaller airline being absorbed by a larger one. Bijoor suggested that a more effective strategy would have been to operate Air India separately for a period of five years, focusing on improving service standards while allowing Vistara to maintain its distinct identity with Air India as a prefix. This approach would have provided Air India with the time and opportunity to enhance its own brand while preserving Vistara's uniqueness. Beyond branding, the merged airline will encounter numerous operational challenges. One of the primary tasks will be to provide customers with a consistent flying experience. Ajay Awtaney, editor of Live From A Lounge, an aviation portal, highlighted that communication will be crucial in the early days of the merger. Customers arriving at the airport expecting Vistara flights may be surprised to find Air India branding instead. Clear communication will be essential for Air India to manage customer expectations during this transition. Another significant challenge lies in the cultural differences between the two airlines. Vistara's agile employees may struggle to adapt to Air India's more complex bureaucracy and systems. The most significant challenge for the merged airline will be to create a uniform flying experience for all customers. Mark Martin pointed out that integrating two airlines with distinct service formats will be a complex task. Despite the challenges, many believe that Vistara's closure was inevitable, whether now or in the future. Air India, as a legacy brand with strong global recognition, would not have allowed a smaller, premium subsidiary to overshadow its revival efforts. Financially, it also makes little sense for the Tatas to maintain two loss-making airlines competing against each other. The combined strength of Vistara and Air India could position the Tatas more favorably against market leader Indigo. The unified Air India group, which includes Air India Express, which completed its merger with the former Air Asia India in October, will boast a fleet size of nearly 300 aircraft, an expanded network, and a stronger workforce. An Air India spokesperson stated that completing the merger would enable Air India to grow rapidly, allowing the two teams to collaborate rather than compete. While there may never be a perfect time to merge, a decision had to be made. For many loyal Vistara customers, the end of the airline signifies a loss of a premium, full-service carrier in India's skies, following the previous collapses of Kingfisher Airlines and Jet Airways. It remains uncertain whether Air India, which often ranks low in customer satisfaction surveys, can successfully fill this void.