Air India and its sister brand Vistara were slated to be merged after Tata Group brought Air India into the fold. However, Tata Sons might take its time to consolidate its airline brands, suggests a report in ET.
Quoting sources familiar with the matter, the report states that Tata Sons will keep the management teams of Vistara and Air India separate for at least another year after all clearances are done for the proposed merger.
The Air India brand has been battered and bruised after several years of neglect, aging aircraft, below par service, operational inefficiencies and controversies that have damaged the brand. It is currently undergoing a major transformation after the Tata Group took over the airline, launching a new brand identity, look and feel and upgrading its aircraft, staff and services.
Vistara, on the other hand, is a much younger brand with a credible reputation built on its standards of efficiency and quality of in-flight experiences and airline services that have allowed it to gain significant consumer trust.
The board wants to bring the older airline brand Air India up to Vistara’s standard of operational efficiency, service and brand trust before the proposed integration. Brand experts have also previously recommended that Tata retain the Vistara brand which is the much stronger brand in the market.
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