Vistara Monday Will join Air India Group. With this, the number of full-service airlines (FSCs) in the rapidly growing Indian aviation sector will reduce from five to just one in the last 17 years. Let us tell you that full-service airlines (FSCs), also known as legacy airlines, provide a variety of services to passengers, including in-flight meals, snacks, beverages, pillows, blankets, and in-flight entertainment. etc. are included. Apart from this, loyalty program, airport lounge access, connecting flights and multi class service are included. Full service airlines typically operate on a hub-and-spoke model, with an extensive route network covering domestic and international destinations. They often target a wide range of travelers.
Will have 25.1 percent stake in Air India
The merger of Vistara will mark the demise of another Indian airline jointly owned by a foreign airline formed after the liberalization of foreign direct investment (FDI) norms. Singapore Airlines, which holds 49 percent stake in Vistara, will have 25.1 percent stake in Air India after the merger. In 2012, the UPA government led by then Prime Minister Manmohan Singh had allowed foreign airlines to buy up to 49 percent stake in a domestic airline. After this, Gulf region airline Etihad acquired 24 percent stake in the now defunct Jet Airways and on the other hand AirAsia India and Vistara were born.
Kingfisher and Air Sahara disappeared
Vistara is also the only full service carrier to commence operations in the last 10 years. At least five FSCs were launched in India following the merger of full service carrier (FSC) Indian Airlines with Air India in 2007. However, with time Kingfisher and Air Sahara disappeared. Kingfisher closed down in 2012, while Air Sahara was acquired by Jet Airways. It was renamed JetLite, and merged with Jet Airways in 2019.
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