Shakeup of Indian airlines boosts competition, business seats

India’s airlines are set for a landmark week, with two milestones days apart, that will redefine the competitive landscape in one of the world’s fastest-growing aviation markets. Vistara operates its final flight on Monday before its planned merger with Air India kicks in the following day, marking the end of a complex and messy two-year long process. On Thursday, market leader IndiGo, operated by InterGlobe Aviation Ltd., debuts its business-class cabins on select routes as it ventures beyond budget travel for the first time. The two developments mark major changes for India’s two largest airlines as the carriers expand and foray beyond their traditional areas of expertise. By incorporating the Singapore Airlines Ltd.-owned Vistara into the much larger but unprofitable Air India, the Tata Group has taken on one of the most complicated aviation mergers globally that included navigating pilot protests which led to dozens of canceled flights this year. The union will be a crucial test of the coffee-to-cars conglomerate’s ability to improve the quality of Air India’s services and turn around the loss-making carrier it bought from the Indian government in 2021 without losing the brigade of loyal Vistara fliers. The challenge for the no-frills IndiGo, meanwhile, will be to revamp its image — it’s like India’s Ryan Air — and dent Air India’s supremacy in the premium sector. “All the jabs that Air India and IndiGo are taking are aimed at each other’s strategy,” said Ajay Awtaney, founder of LiveFromALounge.com, a local aviation analysis platform. “It’s now a two-player game.” While Vistara’s routes, schedules, in-flight products and crew will stay the same for now, its aircraft will be identified using a separate Air India airplane code. Even as the two merging airlines try to reassure passengers there will be minimal disruption, travelers and aviation enthusiasts across India are mourning the end of Vistara.<br/>