Air India inducts third A321neo aircraft as fleet expands under Tata

India's national flag carrier, Tata-owned Air India, has inducted its third Airbus 321neo. The aircraft registered as VT-RTB took off from Hamburg for Indira Gandhi International Airport, New Delhi. Taking to the microblogging platform, Twitter, Air India said, "Welcoming the A321-Neo (VT - RTB), the newest member of our fleet. The aircraft has just come in from Hamburg & we can’t wait for it to be part of our ever-increasing network!"

#FlyAI: Welcoming the A321-Neo (VT - RTB), the newest member of our fleet. The aircraft has just come in from Hamburg & we can’t wait for it to be part of our ever increasing network!#A321Neo #NonStopFlights #NonStopExperiences pic.twitter.com/jkblROLNFO

— Air India (@airindiain) April 29, 2023

Air India welcomed the first (VT-RTD) and the second (VT-RTC) A321neo in the last week of March. Air India has also inducted a Boeing 777-200 LR that will soon be operationalised. In a tweet, Air India said, "We welcome a star on this rainy day - VT-AEE (B777-200 LR). It’ll soon be ready to join our growing international network."

#FlyAI: We welcome a star on this rainy day - VT-AEE (B777-200LR). It’ll soon be ready to join our growing international network.

Picture credits: @delhiairspace#NonStopFlights #NonStopExperiences pic.twitter.com/NPvgpn8Il4

— Air India (@airindiain) May 1, 2023

VT-AEE, Boeing 777-200LR (Image Credit: Twitter/AirIndia - DelhiAirSpace) 

Air India orders 470 aircraft from Boeing and Airbus 

To expand its local and international operations, Air India committed to ordering 250 Airbus aircraft. The commitment includes 34 A350-1000 and six A350-900 wide-body jets, as well as 140 A320neo and 70 A321neo single-aisle aircraft. On the other hand, Boeing bagged an aircraft deal valued at $34 billion. The orders include 190 737 max, 20 of Boeing’s 787 and 10 of its 777Xs.

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Air India, the largest international carrier and the second largest domestic carrier is on a path to reinvent itself by expanding its operations and modernising its fleet. Tata is merging Vistara with Air India as a full-service carrier (FSC) and Air Asia India (AIX) with Air India's low-cost subsidiary, Air India Express (IX).

Vistara is jointly run by Air India (AI) and Singapore Airlines (SIA) in a 51:49 partnership between the TATAs and SIA. 

Air India and Vistara approach CCI for merger approval

Necessary approvals for the merger of Air India (AI) and Vistara (UK) are currently under process. The concerned stakeholders (TATA-owned Air India and Vistara, a JV between Singapore Airlines and TATA) have appeared before the Competition Commission of India (CCI) for regulatory approval, allowing the merger of the two Full Service Carriers (FSC) into a single entity, Air India (AI).

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However, before this key approval is awarded, the concerned authorities will investigate any threats to the market and evaluate further aspects of this merger to its rivals.

Tata Sons, Singapore Airlines, Air India and Vistara have all requested approval from India's antitrust watchdog, the CCI, for the commercial merger of Air India and Vistara. Currently, the Tata family owns a 100 per cent stake in Air India and 49 per cent in Singapore Airlines. The Tata Group (51 per cent) are partners in Vistara. SIA will invest $250 million and hold 25.1 per cent of the merged entity.

Air India Express will be the Low-Cost Carrier (LCC) of Air India

“The proposed transaction relates to the consideration of the merger of Tata Singapore Airlines Limited (Vistara) into Air India and the acquisition of shares in the merged entity by Singapore Airlines and Tata Sons," a notice filed with the CCI read. 

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It is crucial that the CCI considers whether there will be enough competition for the combined entity on a few crucial flight routes. The CCI will impose corrective measures to address any discrepancies it has with the merger if it is not convinced with the components. The approval of the CCI is one of the many conditions necessary for the merger.

The integration will be completed sometime early next year, according to the existing schedule. A full-segment airline (a joint venture between Air India and Vistara) and a low-cost carrier (a joint venture between AirAsia India and Air India Express) will eventually be under the ownership of the Tatas.

Processes under the mergers, such as employee integration, are already underway. All 5000+ Vistara employees would be able to find employment with Air India. For non-flying employees who are being considered for leadership positions, interviews are being held at various levels.

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The senior to a mid-level executive who best fits the position will be kept on, and other candidates may be offered a new position if one becomes available. Issues surrounding pilot seniority and professional advancement have also been covered.

The Vistara brand would no longer exist as a result of the merger, which would be a significant outcome. The Tatas believe that Air India is considerably more well-known internationally, thus the combined company will still have that identity. Nevertheless, aspects of Vistara's working traditions and culture will be retained in the merged carrier.