Tag Archives: Tata

Fitment of 7,000 staff to be completed next month for AI-Vistara merger

More than 7,000 employees of Air India and Vistara have been assessed and their fitment will be complete in June as the merger process of two Tata Group-owned airlines progresses, sources said on Monday.

Air India CEO and MD Campbell Wilson along with Vistara CEO Vinod Kannan held a one-and-a-half-hour long townhall meeting with the employees of both carriers about the proposed merger. Air India and Vistara together have more than 23,500 employees. Air India and Vistara together have more than 23,500 employees.

At the phygital meeting, Campbell said more than 7,000 staff have been assessed and their fitment will be completed in June, as per the sources. The roles and responsibilities of these employees, including the flying staff, will be clear by the end of next month. The roles and responsibilities of these employees, including the flying staff, will be clear by the end of next month.

Around 120 pilots are already seconded between Vistara and Air India, and the movement of employees will continue between the two carriers through secondment. To ensure fairness and transparency, the staffs has been informed that the organisation structure has been finalised with the help of a global consulting firm, leveraging benchmarking and learning from the overall airline industry, the sources said.

To ensure fairness and transparency, the staffs has been informed that the organisation structure has been finalised with the help of a global consulting firm, leveraging benchmarking and learning from the overall airline industry, the sources said.

The plans for fleet expansion, network growth and enhanced service over the next few years have also been taken into consideration while deciding on the organisation structure. The chiefs assured that the fitment or assignment of existing employees into the new structure is being done on the basis of merit and competency. The chiefs assured that the fitment or assignment of existing employees into the new structure is being done on the basis of merit and competency.

Kannan, who is also the Chief Integration Officer for the merger, spoke about the process so far and the work that has been undertaken so far in anticipation of the merger. He also mentioned about the organisation design process, the fitment of employees and the next steps in the integration journey, the sources added.

The merger, which will create one of the biggest airline groups, was announced in November 2022. Once the deal is complete, Singapore Airlines will have a 25.1 per cent stake in Air India. Vistara is a joint venture between Singapore Airlines and Tata Group. The merger, which will create one of the biggest airline groups, was announced in November 2022. Once the deal is complete, Singapore Airlines will have a 25.1 per cent stake in Air India. Vistara is a joint venture between Singapore Airlines and Tata Group.

Campbell also spoke about Air India’s vision and plans and the status of the regulatory approvals. The sources said there will be department-wise townhall meetings in the coming days to apprise the staff about various aspects of the merger.

Campbell said that customers of Air India and Vistara will have more options and greater choices across the combined airline’s robust worldwide route network. Employees of the combined airline will benefit from being part of the combined Air India Group with a vision of an accelerated growth path and a stable financial foundation, he said. Employees of the combined airline will benefit from being part of the combined Air India Group with a vision of an accelerated growth path and a stable financial foundation, he said.

The merger is awaiting a nod from the National Company Law Tribunal (NCLT) in India. In March this year, Singapore’s competition regulator CCCS gave a conditional nod for the proposed merger. In September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions. In March this year, Singapore’s competition regulator CCCS gave a conditional nod for the proposed merger. In September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.

Tata Group took over the reins of loss-making Air India in January 2022. (Source: PTI)

MoCA seeks report on 80 AI Express flights being cancelled due to ‘mass sick leave’

Over 80 international and domestic flights of Air India Express were cancelled after the senior crew members of the airline went on mass ‘sick leave’.

The development came after several cabin crew members started reporting sick since Monday evening and as there are not enough cabin crew members, “scores of flights” have been cancelled at various airports, including Kochi, Calicut and Bengaluru, reports News18.

According to sources, the Ministry of Civil Aviation is looking into the issue to understand the cause of the sudden incident.

Releasing a statement, the Air India Express said, “A section of our cabin crew has reported sick last minute, starting last night, resulting in flight delays and cancellations. While we are engaging with the crew to understand the reasons behind these occurrences our teams are actively addressing this issue to minimise any inconvenience caused.”

“We sincerely apologise to our guests…those impacted will be offered a full refund or rescheduling. Guests flying us today are requested to check if the flight is affected, before heading to the airport,” the statement added.

A union representing a section of the airlines’ cabin crew, Air India Express Employees Union (AIXEU), also wrote to the Chairman of Air India Natarajan Chandrashekharan, talking about the grievances of employees and raised concerns regarding the current situation at Air India Express Limited, particularly following its acquisition by TATA.

The union alleged that the airline is being mismanaged and there is a lack of equality in the treatment of the staff and alleged that mismanagement of the affairs has affected the morale of the employees.

“It is with great disappointment that we address the growing unrest and dissatisfaction among the employees since the takeover by TATA. However, it appears that the reality on the ground does not align with these principles. Despite assurances of job security, salary maintenance, and respect for seniority and experience, there has been a stark departure from these commitments,” the letter read.

Hours after the news of Air India Express flights getting cancelled grabbed headlines, the MoCA sought a report on the cancellations and asked the airlines to ensure facilities for passengers as per the norms laid down by the Directorate General of Civil Aviation (DGCA).

In addition to this, the Ministry asked the carrier, a wholly-owned subsidiary of Air India, to resolve the issue “promptly”. (Source: News18)

Air India CEO predicts need for more aviation hubs in India

 

India’s aviation sector is experiencing such rapid growth that the country could potentially accommodate at least one additional international hub apart from Mumbai and Delhi, stated Campbell Wilson, CEO, Air India Ltd.

Wilson made these remarks during an industry event in Gurugram, highlighting India’s unique market dynamics. He emphasised that India has the potential to establish three hubs and numerous point-to-point services. He noted that northern India exhibits a strong east to west travel flow, while southern India could facilitate travel between Asia and Africa or Australia and Europe.

Air India made headlines last year with one of the largest aircraft purchases in aviation history, ordering 470 planes from Airbus SE and Boeing Co. India’s burgeoning middle class and robust economic growth position it to become one of the world’s largest travel markets.

In addition to market leader IndiGo and emerging player Akasa, Indian carriers have collectively ordered over 1,100 aircraft. Moreover, investments totaling $12 billion are being directed toward constructing more than 72 new airports by 2025.

Air India has been receiving a new aircraft every six days over the past six months, a trend expected to continue for the next year. Wilson disclosed that the airline has recently acquired 11 new Boeing 777s, three Airbus A350s, and approximately 15 Boeing 737 Maxs. The retrofitting of existing widebody aircraft is slated for completion by 2025 or 2026.

Wilson highlighted the historical underservice of the Indian market by domestic carriers, citing comparisons with other aviation hubs like Singapore and Dubai. As part of the Tata Group’s strategy to revitalise Air India, low-cost carriers Air India Express and AIX Connect will merge into a single entity, while Air India and Vistara will undergo consolidation into another.

The Competition and Consumer Commission of Singapore recently approved the merger between Air India and Vistara, with Singapore Airlines Ltd. acquiring a 25.1% stake in the expanded entity. Wilson affirmed that the full-service carrier is progressing well, with all competition clearances obtained, enabling collaborative planning between the two entities.

Air India’s transformation initiative, including a rebranding campaign, has been underway for 18 months. Wilson emphasised that significant efforts have been made to address past issues and implement robust systems, processes, and personnel. The workforce rejuvenation has seen the recruitment of nearly 5,000 individuals, substantially reducing the average employee age from 54 to 35 years. Additionally, Wilson noted that Air India’s IT infrastructure underwent a complete overhaul under Tata Group’s ownership transition from the government.

Singapore approves Air India-Vistara deal with conditions

 

Today, Singapore’s competition watchdog announced its approval of the merger between Tata Group-owned Air India and sister airline Vistara, a joint venture between Tata and Singapore Airlines. The merger aims to establish a dominant full-service airline in both domestic and international markets, a plan unveiled by Singapore’s flagship carrier in November 2022.

Although India’s antitrust body greenlit the deal in September of the previous year, the Competition and Consumer Commission of Singapore (CCCS) had initially raised certain competition concerns. Specifically, the watchdog identified that the merging parties held a significant market share on direct flights between Singapore and key Indian cities such as New Delhi, Mumbai, Chennai, and Tiruchirapalli.

In response to these concerns, the involved parties proposed measures to address potential competition issues. These measures include maintaining capacity on the identified routes at pre-COVID levels, appointing independent auditors to oversee compliance with capacity commitments, and submitting regular annual and interim reports. The CCCS deemed these proposed commitments sufficient to mitigate competition concerns arising from the merger.

As of the deal’s terms, Tata would control 74.9% of the combined entity, spanning autos-to-steel conglomerate, while Singapore Airlines would retain the remaining 25.1%. At the time of reporting, neither Singapore Airlines nor Air India had responded to Reuters’ request for comment.

Passing of IHCL’s Esteemed Senior Vice President Vincent Ramos Leaves Hospitality Industry in Grief

Vincent Ramos, the Senior Vice President of IHCL, aged 55, breathed his last just before sunset on Wednesday, August 16 evening. His contributions were deeply rooted in the ‘Taj’, the flagship brand among the various labels he nurtured in Goa.

An alumni of Mont de Guirim school and hailing from Chorao, Vincent’s journey took him from these beginnings to becoming the General Manager of the esteemed ‘Best Hotel in the World’, Umaid Bhawan Palace Jodhpur in 2016.

Chief Minister Goa, Pramod Sawant fondly recalled, “Vincent was a strong advocate for promoting young talent in the hospitality industry. He enthusiastically supported government initiatives aimed at developing programs within the hospitality and tourism sectors.”

Vincent Ramos was actively engaged with the state government in enhancing Goa’s tourism and contributing to policy formulation. He served as a guiding figure for the tourism committee of the Goa Chamber of Commerce and Industry, and he held a role on the managing committee of the Travel and Tourism Association of Goa.

In more recent times, Ramos assumed responsibilities as the Area Director for Goa at IHCL, a role which saw him charting strategies for the brand’s adaptation to the new Manohar International Airport at Mopa.

The senior leadership team from IHCL is set to come to Goa to pay their last respects to Ramos, a figure hailed as the ‘Most Admired General Manager of the Decade’ in 2018.

Puneet Chhatwal, the Managing Director & CEO of IHCL, conveyed his grief by saying, “The sudden demise of our esteemed colleague and friend, Vincent Ramos, Senior Vice President at IHCL Goa and TTAG Managing Committee Member, has left us deeply saddened. A cherished presence within the TTAG Managing Committee, Vincent was not just a friend and mentor, but also a dependable colleague and an all-around wonderful human being. Our heartfelt condolences go out to his family and friends from everyone at TTAG.”

Singapore Airlines confirms merger talks of Vistara-Air India with Tatas

Singapore Airlines (SIA) said that it is exploring a potential merger of Vistara with Tata Group’s Air India. Tata Group has a 51 per cent stake in Vistara, while SIA holds the balance 49 per cent, reports Financial Express.

This is the first time that SIA has officially acknowledged that it is in talks with Tata Group on the possibility of merging the two airlines. “The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India,” SIA said in a statement to the Singapore Stock Exchange. “The discussions are ongoing and no definitive terms have been agreed upon between the parties,” it added.

It is unclear at this stage what stake, if any, SIA would have if Vistara merges into Air India, or whether fresh funds would be needed for Air India. Still, the change of stance by SIA is significant as it did not agree to partner Tata Group when the latter was bidding for Air India. Tatas had expected that SIA would join it and it would bid for the state-owned carrier through Vistara. Though, SIA did not agree to it, it waived the no-compete clause, which enabled Tata Group to go ahead with its bid for Air India.

The integration of Vistara with Air India will create the second largest airline in the country, after IndiGo. The Tata Group is also merging its other airline, AirAsia India with Air India Express. The Competition Commission of India has approved this merger.

Tata Sons chairman, N Chandrasekaran has often said that the Group’s airline businesses, which operate on thin margins, must be consolidated to ensure operational efficiencies and cost control.

“We will definitely have both full service and low-cost carrier ,” Chandrasekaran said few days ago at a public function. “It’s a long journey. We will have to work on many aspects of the airline and we are working at great speed. Essentially, we will have one airline with two platforms,” he had added.