NEW DELHI: Vistara’s dynamic CEO, Vinod Kannan, might soon find himself en route back to Singapore Airlines (SIA). This transition follows Tata Group’s strategic move to merge Vistara, a full-service carrier (FSC), with Air India by the year’s end, according to reliable sources. Post-merger, SIA is slated to hold a 25.1% stake in the unified Air India.

Leadership Shifts and Management Structure

With the integration of Vistara and Air India, it is anticipated that Air India’s current management will occupy most of the key positions. However, a senior official from Air India mentioned that the final management structure for the merged entity is yet to be solidified.

Vinod Kannan’s Journey

Vinod Kannan, a pivotal figure acknowledged for Vistara’s passenger-friendly reputation, is a long-term SIA veteran who embarked on his journey with the Southeast Asian carrier in 2001. Over a decade ago, Tata and SIA launched a joint venture, leading to the birth of Vistara in January 2015. Kannan moved to Vistara on secondment in June 2019, after serving as the Chief Commercial Officer at Scoot (SIA’s low-cost carrier) and Vice President at SIA. As Vistara approaches its final phase, sources suggest Kannan will return to Singapore Airlines.

Current Challenges for Air India

Two and a half years after Tata’s acquisition of Air India, the airline is grappling with passenger dissatisfaction, mainly due to the deteriorating onboard experience of the old planes and subpar on-time performance. Although Air India charges premium fares, particularly on long-haul international routes, passengers feel shortchanged compared to their experience with Vistara.

The Road Ahead

Despite the high stakes involved in Air India’s transformation, stakeholders acknowledge the pressing need for rapid improvements. The disbandment of Vistara, which has been perceived more favorably by passengers, could intensify the dissatisfaction if Air India fails to elevate its service standards promptly.

“While turning around Air India is indeed one of the most challenging endeavors in contemporary aviation, there’s a necessity for swift enhancements. Passengers could be doubly disheartened with Vistara’s end if Air India’s progress remains sluggish,” stated various AI stakeholders.