The Tata Group aims to quickly consolidate its airline business, which incurred a loss of Rs 15,532 crore in the financial year 2023
The Tata Group is inclined to maintain continuity in Air India’s top management following its merger with Vistara, according to a report by The Economic Times.
Campbell Wilson will continue as the chief executive officer, with Nipun Aggarwal and Sanjay Sharma remaining as the chief commercial and transformation officer, and chief financial officer, respectively, the report said.
Meanwhile, Vistara CEO Vinod Kannan is expected to return to Singapore Airlines (SIA), his parent company. Kannan had been on secondment to Vistara since 2019, serving as the chief strategy officer for the Tata Sons-SIA joint venture. Under the joint venture agreement, SIA had the right to appoint the CEO at Vistara, while the Tata Group selected its finance chief.
Vistara’s Chief Commercial Officer, Deepak Rajawat, is expected to join the merged entity.
Although the majority of Vistara employees will transition to the merged company, some positions may be eliminated due to redundancies, as Air India has already staffed those roles.
Air India has been actively recruiting, drawing talent from other Tata Group companies and startups to overhaul the airline. This effort comes after Air India, previously under government control, accumulated losses exceeding Rs 15,000 crore before being acquired by the conglomerate. Additionally, some Vistara employees have already been reassigned to Air India.
The report quoted a source as saying, “Vistara has been a terrific brand. The team has done a wonderful job but there is a greater purpose to maintain continuity in a larger entity.”
A team comprising senior executives from Air India, Vistara, and the Boston Consulting Group is collaborating on human resources integration. Legal and regulatory compliance matters are being handled by the law firm AZB Partners, the report said.
During the human integration process, Vistara’s non-flying staff has undergone the Hogan Test, designed by the US-based Hogan firm. This test assesses normal personality traits essential for job suitability, particularly in leadership roles.
The Tata Group aims to quickly consolidate its airline business, which incurred a loss of Rs 15,532 crore in the financial year 2023, to leverage synergies, enhance efficiencies, and minimise redundancies.
Air India Express and AirAsia India have merged to form a budget airline as part of the restructuring. The unified entity of Air India and Vistara will compete in the full-service segment.
The conglomerate is striving to complete the Air India-Vistara integration by the end of this year. However, Air India CEO Wilson has indicated that customer-facing aspects, including Vistara’s brand identity, will remain unchanged until 2025.
The report stated that this merger is also significant for Singapore Airlines, as its 25.1 per cent stake in the combined Tata airline entity will bolster its position in the world’s third-largest aviation market.
First Published: Jul 15 2024 | 10:02 AM IST
