Vistara CEO to Employees: Business as usual until lengthy merger with Air India is complete

Vistara CEO Vinod Kannan (Illustration: Moneycontrol)

The process of merger with Air India is "lengthy", and Vistara remains an independent entity till its completion, said the latter's chief executive officer, Vinod Kannan, in a mail to the airline's employees on November 29.

"In the short term, nothing changes and it is business as usual," Kannan said, shortly after a joint release confirmed the planned merger of Air India and Vistara.

Kannan, addressing the concerns of over 4,700 employees of the airline, said they should not be worried about their future.

"There will definitely be multiple opportunities - for growth, elevation and progress. Therefore, I urge you not to worry and speculate about your future.... I can assure you that we are on this journey together and will emerge stronger at the end of it," he stated.

Read the full text of Vistara CEO Vinod Kannan's email to employees

Earlier, a joint release noted that Singapore Airlines (SIA) and Tata Sons have agreed to merge Air India and Vistara, with SIA also investing Rs 2,058.5 crore (US $250 million) in Air India as part of the transaction.

The merger, which is "aimed to be completed by March 2024", will give SIA a 25.1 percent stake in an enlarged Air India group with a significant presence in all key market segments, it added.

Currently, SIA holds 49 percent stake in Vistara, whereas, the remaining 51 percent is held by Tata. The latter had acquired Air India for Rs 18,000 crore from the Indian government earlier this year.

"Though we have a common shareholder, we remain an independent entity vis a vis Air India till the entire process is completed," Kannan noted, in his mail to the employees.

The Vistara CEO further said that the company will remain committed to its expansion plan, which includes the target to increase the current fleet from 54 aircraft to 70 by 2023-end.