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Air India, Vistara seek DGCA approval to speed up merger process

Agencies
Air India-Vistara

Synopsis

Air India and Vistara are expediting their merger process by proposing reduced training requirements for pilots and cabin crew. The Tata-owned airlines are harmonizing manuals to streamline the integration. The Directorate General of Civil Aviation is currently reviewing the proposal. The merger aims to enhance efficiency and eliminate redundancies. Despite the swift consolidation efforts, customer-facing elements may remain unchanged until 2025.

New Delhi: Air India and Vistara are looking to speed up their merger by seeking Directorate General of Civil Aviation (DGCA) approval to minimise the training requirement for pilots and cabin crew, said people with knowledge of the matter. The Tata-owned airlines have proposed that Vistara crew moving to the merged Air India undergo a short-term course as manuals of both have been harmonised.

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“DGCA is examining the manuals before giving any approval,” said a person familiar with the matter.

The DGCA and other aviation regulators mandate that pilots undergo crossover training while changing a company or an aircraft type.



This is to get them familiarised with basic procedures on safety including handling emergencies as these may vary from one airline to another, despite the similarity of aircraft.

The process can take as long as one month as it involves both ground and simulator classes followed by on-the-job training during which a pilot has to fly about 25 hours under the supervision of an instructor.

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Vistara pilots will instead undergo a short-term online training module to familiarise them with any differences, said the people cited above.

“Since the manuals have been merged, there is little difference now except procedural differences like when should the doors be closed before take-off or what should be the public announcement in case of a disruption like a precautionary landing or when to switch off the seat belt signs,” said one of the persons involved in the integration process.

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“To bridge these gaps, training will be conducted via e-learning modules and repeated through instructor-led sessions.”

Spokesperson of both the airlines and DGCA didn’t respond to queries on the topic.

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The Tata Group wants to consolidate its airline business, which posted a loss of Rs 15,532 crore in FY 23, as quickly as possible in order to leverage synergies, eke out efficiencies and reduce duplication.

Under the restructuring plan, Air India Express and AirAsia India have been merged to form a no-frills airline while the combined entity of Air India and Vistara will compete in the full-service segment.

The conglomerate is rushing to complete the latter integration by the end of this year, although Air India CEO Campbell Wilson has said that customer-facing elements, including the brand identity of Vistara, won’t change before 2025.
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The merger is equally important for Singapore Airlines as its 25.1% stake in the merged Tata airline entity will strengthen its presence in the world’s third-largest aviation market.

Vistara CEO Vinod Kannan said on Friday that the transfer of employees from Vistara to Air India will start on July 17.

“We are now proceeding with the movement of Vistara employees into Air India in large tranches,” Kannan told employees in an internal note reviewed by ET. “Flying crew and a minimum team shall continue with Vistara to manage its operations till closure.”

Several consultants including BCG, Sabre and Oliver Wyman have been hired to work on the merger process, which includes harmonisation of the workforce, route network and business practices.


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( Originally published on Jul 05, 2024 )

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