Tata group plans to create 2 brands through mergers of Air India and Vistara and Air India Express and AirAsia India.
GLOTata Group (India) now owns four Indian airlines: Air India, Air India Express, Vistara, and AirAsia India.
Earlier this year Tata announced one of the largest ever orders for Air India, including 470 new Airbus and Boing jets, $40mn to update the interiors of long haul jets and leasing 30 jets to add short-term capacity.
Air India CEO Campbell Willson commented today that he plans to combine these 4 airlines into 2 brands:
- Air India and Vistara are to be merged into one, and the airline will be branded Air India
- Air India Express and AirAsia India are to be merged into one, and the airline will be branded Air India Express
GLO take: The merger will create one of the regional leaders with the potential to become a sizable global player and compete for some of the Middle East to Asia and Asia to Europe Routes. This merger will significantly boost the customer base of both new brands and will create economies of scale for new loyalty programs. Currently, we believe that Air India’s loyalty program Flying Returns is under-invested and under-utilised. With less than 5mn users it has a lot fo potential if branded correctly. Another factor of cause is all-powerfull N. Chandrasekharan, the Chairman of Tata Group, who is also Chairman of Air India and his vision of these mergers.
About Flying Returns – it is India’s first frequent flyer programme, and one of the most rewarding programmes in the region. As a member, you can earn FR points when you fly Air India and 25 Star Airline partners on eligible fare-paying tickets, and redeem them for award travel faster than most programmes.
