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Air India-Vistara merger – maneuvering “Vihaan.AI” through the turbulence

Prashant Chaudhary (Associate Professor based at the WPU School of Business, Dr Vishwanath Karad MIT World Peace University, Pune, India)

Publication date: 24 November 2023

Abstract

Learning outcomes

The expected learning outcomes are to understand the complexities involved in the integration of two carriers with different business strategies and approaches, the merger of two brands with distinct personas and identities and the confluence of two different cultures; figure out the strategic options in front of the Tata Group and how it can deal with various macro- and micro-level business challenges, defy the financial hiccups and manoeuvre the operational complexities to accomplish mission Vihaan.AI; and develop a pragmatic approach to macro and micro business environmental scanning for making strategic business decisions.

Case overview/synopsis

In November 2022, Tata Group, the salt to software conglomerate, announced the merger of Air India (AI) and Vistara. This would lead to the formation of the full-service airline under the brand name “Air India”. The obvious reason behind this was the higher recognition, salience and recall of the brand AI as compared with Vistara in the global market. The Tata Group envisaged the brand AI to be a significant international aviation player with the heritage, persona and ethos of the brand Vistara in the renewed manifestation of AI. To realise these goals, Tata Group laid down an ambitious plan called “Vihaan.AI”, which was aimed at capturing a domestic market share of 30% by 2027.

Complexity academic level

This case study can be taught as part of undergraduate- and postgraduate-level management programmes.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 11: Strategy.

Keywords

Acknowledgements

Note: For this case, the secondary research methodology was used, and it was based entirely on secondary data. Hence, the consent form was not needed.

Declaration of conflicting interests: The author hereby declares that there are no potential conflicts of interest with respect to the research, authorship and/or publication of this article.

Funding: The author did not received any financial support for the research, authorship and/or publication of this article.

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognisable information to protect confidentiality.

Citation

Chaudhary, P. (2023), "Air India-Vistara merger – maneuvering “Vihaan.AI” through the turbulence", , Vol. 13 No. 4. https://doi.org/10.1108/EEMCS-07-2023-0243

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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