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Air India steps up customer focus, plans new culture as Vistara merger completes a year

Hindu Business Line | English | News | Nov. 11, 2025 | UndeterminedMergers & Acquisitions

Vistara merged with Air India in November 2024, creating a larger airline with a unified service experience. One year into the merger, Air India is prioritizing customer service and developing a new organizational culture while navigating operational challenges, including the Ahmedabad air crash and Pakistan’s airspace closure, which have increased costs and reduced flight capacity.

Since the merger, Air India’s weekly flights have decreased by 16%, from 5,600 to 4,700, with destinations dropping from 90 to 82 and the fleet shrinking from 208 to 187 aircraft due to retrofits, lease returns, and route transfers to Air India Express. Premium economy cabin sales remain weak despite competitive pricing, often leading to frequent passenger upgrades from economy class, which risks diminishing the premium economy product’s value. However, the airline’s premium economy fleet has grown significantly from 25 to 108 aircraft, boosting load factors and revenue.

Improvements have been noted in ground and in-flight services, such as standardized crew interactions and enhanced communication during service disruptions. A new bar menu is planned with differentiated drink options based on destinations and class of travel. The airline reports its combined domestic Net Promoter Score has reached an all-time high, surpassing Vistara’s previous performance.

Air India is actively shaping a new corporate culture blending legacy Air India employees, Vistara staff, and new hires post-privatization. An all-employee survey has been conducted, and efforts to create common seniority lists for pilots and cabin crew are ongoing, though some crew have expressed concerns about rostering and leave scheduling. Subtle cultural shifts include adopting Vistara’s less hierarchical style of addressing seniors by first name, moving away from formal titles commonly used in Air India.

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