CCI's queries on Vistara merger 'normal': Air India CEO Campbell Wilson

The Competition Commission of India’s (CCIs) request to Air India for more information regarding its proposed merger with Vistara is a “normal and important part of the evaluation process,” its chief executive officer (CEO) and managing director (MD) Campbell Wilson said on Friday.

Last month, the CCI had issued a notice to Air India asking why its proposed merger with Vistara should not be probed over concerns about competition in the Indian aviation market.

Meanwhile, Tata Sons chairman emeritus Ratan Tata and Tata Sons chairman N Chandrasekaran had personally reviewed seat options for premium cabins in Air India’s future aircraft, Wilson said.

In February, Air India had placed the world’s second largest single-tranche order for 470 planes — 250 with Airbus and 220 with Boeing. 

“You may have recently read that the CCI has asked for more information regarding our proposal to merge with Vistara. We welcome this request,” Wilson told employees in a message that has been reviewed by Business Standard.

Tata Sons and Singapore Airlines (SIA) had, in April, filed a merger application with the CCI.

It stated that the amalgamation of Vistara with Air India will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India.

They expressed hope to conclude the merger by March 2024. Air India is wholly owned by Tata Sons. Vistara, on the other hand, is a 51:49 joint venture between Tata Sons and SIA.

On India’s top-five busiest routes, Air India Group — which comprises Air India, Vistara, AirAsia India and Air India Express — in June held 38-53 per cent share in terms of scheduled flights, according to aviation analytics firm Cirium.

Wilson said the process related to the CCI is running its “proper course”.

And, Air India continues to make progress on the integration of its low-cost carriers (LCCs): Air India Express and AirAsia India, he added.

Air India is planning for an eventual end-state where the Air India Group has a “single, much larger full-service carrier and a single (also much larger) LCC,” with aligned practices, optimised systems and career prospects across the combined entity, he added.

The Tata Group is consolidating its aviation business and merging four airlines into two. Air India is being merged with Vistara to create a single full-service carrier. AirAsia India is being merged into Air India Express to create a single LCC under Air India.

AirAsia India and Air India Express are completely owned by Tata Sons. Their merger was approved by the CCI in June last year. 

Wilson said on Friday, “From a single seniority list and career progression path for pilots and cabin crew, to harmonising dozens of operating manuals, to aligning well over 100 IT systems, our good forward momentum continues.”