Even a year after the merger of Air India and Vistara, the company's performance has not met expectations. Plane crashes, a reduction in flights, technical issues, and a declining market share have slowed the airline's progress.
Business News: Air India, once the country's sole airline, is still striving to take a new flight. Even a year after coming under the Tata Group's ownership and merging with Vistara, the company is failing to perform as expected. Within a year, plane crashes, a decrease in flights, a shortage of its fleet, and a declining market share have collectively slowed down the airline's pace.
History of Tata's Airline
India's oldest airline, Air India, was founded in 1932 by J.R.D. Tata under the name "Tata Airlines." He personally piloted the first flight from Karachi to Bombay, carrying airmail. Later, the airline was renamed Air India, and J.R.D. Tata came to be known as the "Father of Indian Aviation."
After independence, in 1953, the Indian government nationalized the airline by acquiring a majority stake. After decades under government control, the company became burdened with debt. Finally, in 2021, the Tata Group took control of it again, initiating its revival.
Major Merger with Vistara
Vistara, a joint venture between Tata and Singapore Airlines, was formally merged into Air India on November 12, 2024. Following the merger, all operations came under Air India, and Vistara's booking system and flights began operating under the Air India name.
However, while this merger gave Air India a new identity, the company appeared to fall behind in terms of performance.
Accidents and Technical Problems Increased Difficulties
Since the merger, Air India has faced several challenges. A fatal plane crash in Ahmedabad in June 2025 dealt a blow to the airline's image. The aircraft, which was en route to London, crashed just minutes after takeoff, killing 260 people.
Following this accident, questions arose regarding Air India's safety protocols and operational efficiency. Furthermore, issues with the supply chain and technical maintenance have further slowed down the airline's progress.
Decrease in Fleet Size
At the time of the merger, the combined fleet of Air India and Vistara was 208 aircraft, while the total number, including Air India Express, reached 298. However, a year later, this number has decreased to 187 aircraft. After the Ahmedabad accident, one 787 aircraft was permanently removed from service.
Additionally, older B777-200LR aircraft were retired from the fleet, and some leased aircraft were returned upon completion of their terms. Meanwhile, six B777-300ER aircraft expected from Singapore Airlines have not yet been delivered to Air India.
Number of Flights Decreased
Before the merger, Air India and Vistara jointly operated over 5,600 weekly flights on approximately 90 domestic and international routes. However, by November 2025, this number had decreased to 4,823 flights.
According to data from aviation analytics company Cirium, this decline is due to operational limitations and reduced fleet availability. This has led to difficulties for passengers with ticket bookings and flight cancellations.
Decline in Market Share
When Air India launched its transformation program, Vihaan.AI, the goal was to achieve a 30% market share within 5 years. In September 2024, when the four airlines (Air India, Vistara, AirAsia India, and Air India Express) were operating separately, the group's market share was 29.2%.
After the merger, it decreased to 26.4% in December 2024 and stabilized at only 27.4% by September 2025. This indicates a continuous decline in the Air India Group's market share over a year.
Why the 'New Flight' Failed to Take Off
Experts state that the biggest challenge after the merger was integrating the operational systems and staff of both companies. Transforming Vistara's premium image and Air India's traditional image into a unified brand identity was not easy.
Additionally, limitations on slots for international flights, maintenance delays, and geopolitical challenges also slowed down the pace of progress. Furthermore, many of Air India's older aircraft are technically weak, which has affected their flight capacity.
