NEW DELHI: Vistara CEO Vinod Kannan could be headed back to Singapore Airlines (SIA) as the Tata Group is all set to merge this full service carrier (FSC) into Air India before the year end, say sources. SIA will have 25.1% stake in the merged AI.
The merged Vistara-AI Air India is likely to see AI current management team in most key positions. However, a senior AI official said the management structure for the merged entity is yet to be finalised.
Kannan, who is among the key players credited with Vistara’s passenger-friendly image, is a SIA veteran who had joined the mega southeast Asian carrier in 2001. Just over a decade back Tata and SIA decided to create a JV FSC in India, Vistara, which started flying in Jan 2015. Kannan was sent on secondment to Vistara in June 2019, when he was chief commercial officer Scoot (SIA LCC) and before that he was SIA VP. “He is likely to return to Singapore Airlines now as Vistara sunsets,” say sources.
“Some others on secondment from SIA in Vistara and also those from other group companies could return too,” say multiple sources.
AI is now facing increasing restiveness from passengers 2.5 years after the Tata takeover on several fronts but especially these two: poor onboard experience on old planes that received no upkeep during Maharaja’s PSU years and a tacky ontime performance. Despite very high fares (especially on international routes, and those too medium to long hauls), passengers are not beginning to feel shortchanged. Vistara was seemingly better of the two Tata Group full service carriers (other being AI) strictly from a passenger perspective and that will be gone before the year end.
“While AI turnaround is the most challenging exercise in contemporary aviation, it has to improve quickly otherwise passengers will be doubly unhappy with Vistara being disbanded when AI still had a very long way to go. Many people are now wondering if the medicines being given for curing AI of chronic illnesses are working. Tatas must review this as there is a lot at stake,” said multiple stakeholders of AI, including frequent flyers.
About 2-3 years after it started flying, the then FSC leader in India – Jet Airways – started to decline before eventually shutting down in 2019. Vistara then emerged as the most passenger friendly (though not for overworked and stressed pilots who recently had to protest to be treated humanely) airline in India.
Sources say a “farewell” is being planned for brand Vistara.