Today marks one year since the historic merger between Vistara, the Tata-Singapore Airlines joint venture, and Air India. This significant consolidation in Indian aviation has faced numerous challenges, including a tragic Air India flight crash in June with only one survivor, alongside ongoing transformation hurdles.
Fleet and Flight Operations: A Contraction Story
At the time of the merger, the combined entity proudly displayed a fleet of 298 aircraft, including Air India Express operations. The core Air India-Vistara fleet specifically stood at 208 aircraft.
One year later, the situation has reversed unexpectedly. The fleet has significantly decreased to 187 aircraft, with additional planes scheduled for departure. This contraction contradicts initial expectations of fleet expansion.
Several factors contributed to this reduction. The unfortunate Ahmedabad crash resulted in one Boeing 787 being written off completely. Additionally, the airline retired its legacy B777-200LR aircraft. The former Delta Air Lines B777-200LRs are also returning after lease expiration. Furthermore, six B777-300ERs promised from Singapore Airlines never joined the fleet.
Route operations have also seen changes. During the merger, the combined airline served 90 domestic and international destinations with over 5,600 weekly flights. Current data from aviation analytics company Cirium shows weekly flights have dropped to 4,823 this November.
While the airline suspended Washington services, it successfully added flights to London Heathrow. The carrier also launched several seasonal and year-round domestic destinations including Bhuj, Gaya, and Jodhpur, alongside codeshare partnerships with Kenya Airways and Air Astana.
On a positive note, the fleet is moving toward operational synchronization. Air India has retrofitted its A320neo aircraft from two-class to three-class configurations to match former Vistara planes, creating a more consistent product offering.
Market Share Performance: The Rollercoaster Ride
When Air India launched its ambitious Vihaan.AI transformation program, it targeted achieving 30% market share as a group within five years. Market conditions initially suggested rapid progress toward this goal.
In September 2024, the last month when four entities operated separately, the group commanded 29.2% market share in India. However, by December, the first full month of consolidated operations, market share dropped to 26.4%. As of September 2025, domestic market share has recovered slightly to 27.4%, with October data still awaited.
Transformation Challenges and Future Outlook
The next significant phase for Air India focuses heavily on training infrastructure. While the airline has inaugurated simulators in Gurugram through an Airbus partnership, the much-anticipated aviation academy at Amravati in Maharashtra remains delayed. The academy was originally scheduled to begin operations in the second half of 2025.
Timeline slippages continue to challenge the airline's transformation. The retrofit of 27 A320neo aircraft was only completed in October this year, missing the initial June deadline and subsequent September revision. The first Boeing 787s are expected back from refit by December, while the 777 fleet retrofit faces further delays, raising questions about initial planning accuracy.
Despite these challenges, the future holds promise. The influx of Boeing 787-9 and Airbus A350 aircraft will introduce newer configurations and products to the fleet. This modernization will enhance competitiveness with regional hubs and attract more international transfer passengers, providing a buffer against the depreciating Indian rupee that recently impacted IndiGo's Q2 results.
The airline has considerable ground to cover. While celebrating this important merger anniversary, Air India must accelerate its transition from a "work in progress" mindset to achieve its ambitious transformation goals in the competitive Indian aviation landscape.
