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PROJECT REPORT
(SUBMITTED FOR THE DEGREE OF B.COM (HONOURS) IN
ACCOUNTING AND FINANCE UNDER UNIVERSITY OF CALCUTTA)

TITLE OF THE PROJECT

A STUDY ON VISTARA AIRLINES- AIR INDIA MERGER

(B.COM. SEMESTER – VI)

SUBMITTED BY

NAME OF THE STUDENT: SHIVAM MISHRA

C.U. REGISTRATION NO.: 544-1111-0680-20
C.U. ROLL NO.: 201544-21-0005
NAME OF THE COLLEGE: VIVEKANANDA COLLEGE, THAKURPUKUR

SUPERVISED BY
NAME OF THE SUPERVISOR: PROFESSOR JAYANTA MAJUMDAR
NAME OF THE COLLEGE: VIVEKANANDA COLLEGE, THAKURPUKUR

APRIL, 2023

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STUDENT’S DECLARATION
I hereby declare that Project Work with the title ‘A STUDY ON VISTARA AIRLINES- AIR INDIA
MERGER’ was submitted by me for the partial fulfillment of the degree of B.COM. (Honours) in
Accounting and Finance under the University of Calcutta is my original work and has not been
submitted earlier to any other University/Institution for the fulfillment of the requirement for any
course of study.

I also declare that no chapter of this manuscript in whole or in parts has been incorporated in this report
from any earlier work done by others or by me. However, extracts of any literature which has been
used for this report has been duly acknowledged by providing details of such literature in the
references.

Place: KOLKATA Signature:

Date: Name: Shivam Mishra
Address: 1139, Unique Town, Kasta Danga Road,
Shibrampur, Kolkata- 700 061
C.U. Registration No.: 544-1111-0680-20
C.U. Roll No.: 201544-21-0005
College Roll No.: CH/M/20-21/ 279

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SUPERVISOR’S CERTIFICATE
This is to certify that SHIVAM MISHRA, a student of B.Com. (Honours) in Accounting & Finance
of Vivekananda College, Thakurpukur under the University of Calcutta has worked under my
supervision and guidance for his Project Work and prepared a Project Report with the title ‘A STUDY
ON VISTARA AIRLINES- AIR INDIA MERGER’

The project report, which he is submitting, is his genuine and original work to the best of my
knowledge.

Place: KOLKATA Signature:

Date: Name: Dr. Jayanta Majumdar

Designation: Assistant Professor

Name of the college: VIVEKANANDA COLLEGE,

THAKURPUKUR.

Kolkata: 700 063

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ACKNOWLEDGEMENT
I convey my heartfelt appreciation to Dr. Jayanta Majumdar without whose cordial and active
supervision the project could not have come into light. I also extend my thanks to all other teachers of
my college for their commendable efforts to bring out this project in a very short span of time.

Again I am thankful to Dr. Jayanta Majumdar for reposing confidence on me to write on this
dynamic subject and share his vast knowledge for the completion of this project.

Moreover, I am also thankful to all other learned members of my college for valuable suggestions
regarding the project.

My sincere thanks to Dr. Tapan Kumar Poddar, Principal of Vivekananda College, for giving me
this opportunity to carry out this project.

Date ______________________

( signature of the student)

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CONTENT

Particulars Page No.

A. INTRODUCTION 7- 11

- BACKGROUND OF THE STUDY 8

- ABOUT THE PARTIES INVOLVED 8

- NEWS OF THE MERGER 9

- OBJECTIVES OF THE MERGER 9

- LITERATURE REVIEW 10

- RESEARCH METHODOLOGY 11

- OBJECTIVE OF THE STUDY 11

B. CONCEPTUAL FRAMEWORK 12- 25

12- 16
CHAPTER-1: AIR INDIA -VISTARA MERGER
13
1.1 ABOUT THE MERGER
13-14
1.2 WHY THIS MERGER IS SIGNIFICANT?
14-15
1.3 FACTORS RESPONSIBLE FOR THIS MERGER
15-16
1.4 POTENTIAL IMPLICATION OF THE MERGER
16
1.5 WHO WILL BENEFIT FROM YHIS MERGER?
17-19
CHAPTER-2: SWOT ANALYSIS OF AIR INDIA – VISTARA
MERGER
20-21
CHAPTER-3: IMPACT OF AIR INDIA – VISTARA MERGER
ON THE INDIAN AVIATION INDUSTRY
22-23
CHAPTER-4: “SURVIVAL OF THE FITTEST”
24
CHAPTER-5: STEPS TAKEN TO MAKE THE AIR- INDIA
VISTARA MERGER A REALITY
25
CHAPTER-6: FUTURE OF AIR INDIA – VISTARA MERGER
C. PRESENTATION OF DATA, ANALAYSIS AND
26- 32
FINDINGS

- DATA ANALYSIS 26-31

- INTERPRETATION OF THE STUDY 32
D. LIMITATIONS OF THE STUDY 33
34
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E. CONCLUSION
F. BIBLIOGRAPHY 35
36
G. QUESTIONAIRE

INTRODUCTION

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BACKGROUND OF THE STUDY

The Indian Aviation Industry is one of the fastest growing sectors in India. It is also one of the most
challenging sectors because it is very difficult to maintain a strong holding on a significant portion of
the total market share. Many big airline companies failed to do so, for example: Jet Airways;
Kingfisher Airlines; etc. Recently, a news regarding the merger between Vistara Airlines and Air India
came out which shook the entire aviation industry.

ABOUT THE PARTIES INVOLVED:

1. VISTARA AIRLINES

Tata SIA Airlines Limited, operating

as Vistara, is an Indian full-
service airline, based in Gurugram, with
its hub at Indira Gandhi International
Airport. The carrier, a joint venture
between Tata Sons and Singapore
Airlines, commenced operations on 9
January 2015 with its inaugural flight
between Delhi and Mumbai. The airline
had carried more than two million
passengers by June 2016 and as of May

2019, has a 4.7% share of the domestic carrier market, making it the 6th largest domestic
airline. The airline serves 34 destinations with a fleet of Airbus A320, Airbus A321neo, Boeing
787-9 and Boeing 737-800NG aircraft. Vistara is a premium ranged Aeroplane company.

2. AIR INDIA

Air India is the flag carrier airline

of India, headquartered at New
Delhi. It is owned by Talace Private
Limited, a fully owned subsidiary
of Tata Sons, after Air India Limited's
former owner, the Government of
India, completed the sale. Air India
operates as a fleet of Airbus and

Boeing aircraft serving 102 domestic and international destinations. The airline has its hub
at Indira Gandhi International Airport, New Delhi, alongside several cities across India. Air
India is the largest international carrier out of India with an 18.6% market share. Over 60 Page | 7
international destinations are served by Air India across five continents. The airline became
the 27th member of Star Alliance on 11 July 2014.
Air India was originally founded by J.R.D. Tata in 1932, which was taken aver by the
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NEWS OF THE MERGER

In February 2023, Air India CEO Campbell Wilson announced that the Vistara Airlines brand would
be dropped and merged with Air India in a few months.

Singapore Airlines (SIA) and Tata Sons announced the Air India-Vistara merger wherein SIA
would own a 25.1% stake in the enlarged Air India group. SIA and Tata sons aim to complete the
merger by March 2024. After which they wish to discontinue the brand Vistara.
This announcement shook the Indian Aviation Industry. It is one of the biggest mergers in the history
of Indian Aviation Industry. As a result, about 80% of the total market share will be in the strong
holding of Air India and Indigo Airlines.

OBJECTI
VES
OF THE MERGER

 To prevent conflict between two companies under the same group.

 To increase the total market share as a whole.
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 To enable the SIA group to gain exposure to an entity that is four to five times larger to
Vistara.
 To create the largest international carrier and second largest domestic carrier.

LITERATURE REVIEW
A literature review is a comprehensive summary of previous research on a topic. The literature review
surveys scholarly articles, books, and other sources relevant to a particular area of research. The review
should enumerate, describe, summarize, objectively evaluate and clarify this previous research. It
should give a theoretical base for the research and help the author to determine the nature of your
research.
The aviation industry in India has been witnessing a steady growth over the past few years, with the
Indian government taking several measures to promote growth and increase efficiency in the sector.
One of the latest developments in the Indian aviation industry is the proposed merger between Air India
and Vistara, two of the leading airlines in the country. This literature review aims to explore the factors
that have led to this merger and analyse its potential implications on the aviation sector in India.
The news of the merger was widespread and was able to grab the attention of various newspapers;
certified market analyst; common people; and others. After screening through the available literature,
the research was based on the following literatures:
 "Air India and Vistara Merger: What it Means for Indian Aviation Industry." Published
by Financial Express.
 "Air India, Vistara Merger Will Give Wings to India's Dreams of Being a Global Aviation
Hub." Published by News18.
 "Vistara-Air India Merger: Good for the Industry, Bad for the Employees." Published by
ET Now.
 "Air India-Vistara Merger: Ready for Take-Off?" Published by Asia Times.
 "Air India, Vistara Merger: Is It a Viable Solution to Air India's Debt Woes?" Published
by Business Today.
 "Air India and Vistara Merger May Not be Easy to Accomplish." Published by Live Mint
 "Air India, Vistara Merger Talk Gains Momentum." Published by The Hindu Business
Line.
 "Air India, Vistara Merger Could Create a Powerhouse in Indian Aviation." Published by
Forbes India.
 "Air India and Vistara Merger: What it Means for Passengers." Published by Hindustan
Times.
 "Air India-Vistara Merger: Not a Done Deal Yet, Say Experts." Published by The
Economic Times.
The study of the above literatures suggests that the proposed merger between Air India and Vistara has
the potential to create a stronger player in the Indian aviation market, improve operational efficiency
and reduce debt burden for Air India. However, there are also concerns that the merger could lead to a
decrease in competition and an increase in market concentration, which could adversely affect
consumers.
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RESEARCH METHODOLOGY

Research methodology simply refers to the practical “how” of any given piece of research.
More specifically, it’s about how a researcher systematically designs a study to ensure valid and
reliable results that address the research aims and objectives

For this study the data was collected using questionare from people of different proffessions to
get a summerised version of their reaction regarding the news of possible merger between Air
India and Vistara Aielines.

Primary Data has been collected through the survey.

OBJECTIVE OF THE STUDY

 The purpose of the study is to collect and analyse primary data to determine the feasibility,
impact, and potential benefits or drawbacks of the merger between Air India and Vistara
Airlines on the Indian aviation industry, stakeholders, and consumers.
 The study can help to make informed decisions and strategies regarding the merger and its
consequences.
 To give a brief idea about the impact of the merger on the Indian Aviation Industry and other
airlines..
 To find out the individual expectations regarding the merger’s future.

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CHAPTER-1:

AIR INDIA- VISTARA MERGER

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1.1 ABOUT THE MERGER

In February 2023, Air India CEO Campbell Wilson announced that the Vistara Airlines brand would
be dropped and merged with Air India in a few months.
Singapore Airlines (SIA) and Tata Sons announced the Air India-Vistara merger wherein SIA
would own a 25.1% stake in the enlarged Air India group. SIA and Tata sons aim to complete the
merger by March 2024. After which they wish to discontinue the brand Vistara.
The merger of Vistara with Air India will mark the beginning of a consolidation phase in the Indian
aviation sector where nearly half a dozen small and big airlines which is price sensitive and excessively
regulated have ceased its operations.
According to some aviation experts, the merger indicates that the sector is heading towards a
duopoly and is very positive for the overall ecosystem, i.e., the aviation sector will be divided
among Indigo Airlines and Air India which is roughly around 80%.
1.2 WHY THIS MERGER IS SIGNIFICANT?
 The Singapore Airlines (SIA) will get 25.1% stake in the merged entity at an investment of
approx. 250 million USD. The rest of the stake will be held by Tata sons.
 These stakes will be in an enlarged Air India Group, which will have Air India, Vistara, AirAsia
India and Air India Express. The merger of all these airlines are expected to be completed by
March 2024 after receiving regulatory approvals.
 The Air India Group is already in the process of merging Air India Express and AirAsia India
into a single entity that will provide low-cost flight services.
 The enlarged Air India Group would help to consolidate India’s aviation sector. It will provide
fresh growth opportunities for the previously state-owned carrier after years of mismanagement
and losses.
 The joint venture between Tata Sons and Singapore Airlines will provide Air India the required
strategic expertise, industry capabilities, and capital inflow.
 For Tata Group, this merger marks the start of another chapter of its business activities in the
aviation sector.
 After the merger of all the brands, the SIA will have access to lucrative landing and parking
slots around the world.
 It will also receive a strong foothold in the busy westbound market from India, which is
dominated by Dubai’s Emirates and others.
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 The merger will help SIA to protect itself from consequences of another pandemic. It was
especially impacted because of the lack of the domestic market and the closure of international
borders.
 The SIA is planning to fully fund the Air India investment from its internal cash sources, which
was estimated around $17.5 billion.
 The Tata and SIA have agreed to take part in additional capital injection if required to promote
the growth and operations of the enlarged Air India entity in FY2022/23 and FY2023/24.
1.3 FACTORS RESPONSIBLE FOR THIS MERGER:
The aviation industry in India has been struggling with a number of challenges in recent years,
including high operating costs, intense competition, and regulatory barriers. The merger of Air
India and Vistara is expected to help both airlines overcome these challenges and create a stronger
player in the market.
According to reports of The Hindu Business Line, the merger would result in synergies in terms of
fleet size, route networks, and customer base, which would help the merged entity to achieve
economies of scale and improve operational efficiency.

Another factor contributing to the merger is the Indian government's efforts to privatize Air India,
which has been loss-making for several years. The government has been trying to sell its stake in the
airline since 2018, but has not found a suitable buyer due to various reasons, including the high debt
burden of Air India. The merger with Vistara is being seen as a way for Air India to reduce its debt
burden and improve its financial performance, thus making it more attractive for potential investors.
The above factors are not the only factors responsible for this merger, the other factors responsible are
as follows:
a) Expansionary motive: Air India and Vistara Airlines was merged as a part of an expansionary
motive. The aim of this merger was to become the largest international carrier and second
largest domestic carrier. Though an official response is not given regarding the name of the
merged entity, it is mostly going by the name Air India for now.
b) Rivalry and conflict: As we know both Vistara and Air India belong to the TATA group so,
rivalry between the companies belonging to the same group and same bracket might face

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difficultly during their operations and may find themselves amidst the conflict in the future. To
prevent such a situation Air India and Vistara was merged together.
c) Smooth Operations: Even if there had been no conflict among the companies, it would have
been difficult to finance and maintain operations to run smoothly as airlines requires a huge
amount of fixed capital and working capital.
d) Comeback of Air India: When Air India was repurchased by the TATA group, everyone had
waited for the comeback of Air India. So, it can be assumed that this merger was an act to
announce the comeback of Air India into the aviation industry.
e) Challenge Indigo Airlines: Indigo Airlines is a major player in the Indian Aviation industry
with a market share of around 59,8%. With this merger TATA group aims to bring down the
market share of Indigo Airlines in the Indian market.
f) High operating Cost: TATA group had to pay a great amount of money to government of
India to acquire Air India. Though it got all the assets, it also got the liabilities. Moreover, the
cost of running the airline is very high and requires huge capital. Through the merger it is
expected that more capital will move in to the business.
g) Increased connectivity: Sometimes airlines merge together to increase their connectivity.
Through this merger, SIA group can gain exposure to an entity that is four to five times larger to
Vistara.
1.4 POTENTIAL IMPLICATION OF THE MERGER:

According to the reports of Business Today, the proposed merger of Air India and Vistara has been met
with mixed reactions from industry experts and stakeholders. Some experts believe that the merger
would create a stronger player in the Indian aviation market, which would be better equipped to
compete with other major players such as IndiGo, SpiceJet, and GoAir. The merged entity would have
a larger share of the domestic market and a wider international network, which would help it to attract
more passengers and improve profitability.
However, there are certain concerns pointed out by the Economic Times that the merger could lead to a
reduction in competition in the Indian aviation market, which could result in higher fares and reduced
services for passengers. The merger would reduce the number of major players in the market, which
could lead to a decrease in competition and an increase in market concentration. This could result in a
situation where the merged entity, along with other major players, would have significant pricing
power, which could adversely affect consumers.

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1.5 WHO WILL BENEFIT FROM THIS MERGER?

The Air India- Vistara Merger will benefit the following:

Tata Group
Singapore Airlines (SIA)
Indian Aviation Industry

TATA GROUP
Inflow of sufficient capital
Access to the market share mostly meant for premium airlines
Goodwill of Vistara Airlines regarding customer support, great- in- flight
experience;etc.
Access to the fleet of luxurious aeroplanes like Airbus A320, Airbus
A321neo; etc.

SINGAPORE AIRLINES
Access to a larger market share in aviation industry
Access to fleet of 220 plane carriers
Goodwill of Air India due to its nostalgia effect on Indian customers
Access to a total of 39 international and 46 domestic destinations

INDIAN AVIATION INDUSTRY

Merger between Air India and Vistara Airlines is likely to strengthen the
Indian Aviation Industry
The merger will help to create a perfect duopoly market with two players
with almost equal market share which will likely bring the the prices of
plane tickets.
With the merger being sucessful, Air India will help to make the Indian
Aviation Industry popular.
The merger involves the TATA group which is highly respected by every
Indian, this will help to bring back the trust which people have lost on the
Indian Aviation Industry due to the Kingfisher scam and the Jet Airways
recent shutdown.

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CHAPTER-2

SWOT ANALYSIS OF AIR INDIA- VISTARA MERGER

STRENGTH
• Support from western countries like USA, ENGLAND AND FRANCE.

• Access to 39 international and 46 domestic destinations.

• Access to funds from different financial institutions at lower interest rates.

WEAKNESSES
• Actual time required to complete all the legal proceedings exceeds the expected time.

• Delay in receiving order of 840 aircrafts from Airbus and Boeing.

OPPORTUNITIES
• To become the largest domestic and 2nd largest international carrier.

• Revival of Air India.

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THREATS
• In aviation industry the more the aircraft carrier, more is the reach. This theory was
cracked by IndiGo airlines which enabled it to become the market leader for quite a while.
Moreover, before the merger IndiGo had already placed an order of 300 aircrafts, hence it
will recieve the delivery of the aircrafts before Air India which will give Indigo the time to
conquer other routes and increase its base.

• Smaller airlines company has started making plans for countering the merger and have
placed order for new aircrafts in order to prevent domination from Air India and Indigo.

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CHAPTER-3

IMPACT OF AIR INDIA – VISTARA MERGER ON THE INDIAN AVIATION

INDUSTRY

The Indian aviation consultancy, CAPA

India had welcomed the merger between
Air India and Vistara Airlines. As per
CAPA India, the combination of TATA
Sons and Singapore Airlines will provide
Air India with necessary strategic
expertise, industry capabilities, access to
capital and determination to create an
airline that India is proud of.
CAPA India sees the emergence of Air
India as a global network carrier in terms
of size, scale, standards of service and as a
medium to earn foreign currencies to
support the Indian Government. CAPA
India’s support regarding this deal was
evident when in a press conference CAPA
India gave a statement –
“We believe that this is good for India and
for Indian aviation.”
Followed by;
“India needs a high quality, dependable
long haul and ultra-long-haul airline to
meet the country’s air connectivity
requirements. The combined entity is in
line with India’s aspirations to be a USD 5
trillion economy. The combination of Tata
Sons and Singapore Airlines will provide
Air India with the requisite strategic
expertise, industry capabilities, access to
capital and determination to create an
airline that India will be proud of. Today
marks an important step in the
development of a world class airline,
although it will take several years for the
full results to bear fruit”.

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CAPA also added in its statement that the Indian Aviation Industry has been strategically and positively
placed, and this merger will bring strength to this sector and will have a positive impact on the entire
ecosystem.
According to CAPA, the Indian Aviation Industry are moving towards a two-pillar system around Air
India and IndiGo, are expected to achieve a domestic market share of roughly around 80% and in the
international market they are expected to grow from 37.8% to more than 50%. This will help to draw
the consumers attention back to the Indian carriers from foreign airlines in the international market.
Thus the merger is expected to have a positive impact on the entire aviation ecosystem and boost the
Indian Aviation Industry, giving it a chance to become the fastest growing sector both domestically and
internationally,

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CHAPTER-4

“SURVIVAL OF THE FITTEST”

Professor Darwins theory of evolution- “Survival of the fittest” perfectly fits with the situation
which may happen due to the joint venture or merger between Air India and Vistara Airlines. This
merger may have a positive impact for the Indian Aviation Industry but not for the smaller players who
are a part of this industry but their
contribution has a very little impact on the
industry. But after this merger, it may
happen that their contribution towards the
industry would hardly matter as it is
estimated that the smaller players in the
market will have roughly 20% market
share and they will have to fight for that
20% share for their survival in this
industry.
The survival game difficultly within the
20% is likely to increase because of the
emergence of Akasa Air backed by late
Rakesh Jhunjhunwala, which is said to be
an ultra- low-cost carrier and Jet Airways
under a new management.
Sanjiv Kapoor, airline’s top executive
said that after the news of the merger was
made public all the smaller players started
panicking and started to prepare for
counter measures and cross- cutting
policies. Till now no employees has been
laid off but there is a chance that it may
happen in the future.
Indian domestic aviation sector was
originally dominated by IndiGo and after
the merger of Air India- Vistara the
dominated part will expand and
competition will grow which is
concerning. According to the managing director of Primus Partners, an Indian advisory company based
in New Delhi, Anurag Singh:
“If we take a look at the domestic airlines, almost everyone is in the red, Airlines with lower market
share are the most vulnerable. Not all of them will survive now”.

He also says, “Whether they will merge or whether they die ... is something that we will see. In the
airline industry, economies of scale enjoyed by bigger carriers are critical, according to Mr Singh.

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It’s the larger airlines that are able to drive down the cost per passenger mile and hence they have
a slight advantage in the market,

The planned merger of Air India and Vistara, which, is expected to be completed by March 2024,
will likely cause a turbulence in the sector for smaller rivals.”

Thus, the smaller players in the aviation sector will be the worst affected.

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CHAPTER-5

STEPS TAKEN TO MAKE AIR INDIA –

VISTARA MERGER A REALITY
In February 2023, Air India CEO Campbell
Wilson announced that the Vistara Airlines brand would be
dropped and merged with Air India in a few months.
After going public with the news both Air India and Vistara
stared preparing to apply for the regulatory approval for the
process. Legal teams are planning filings with various Indian
authorities as well as foreign competition authorities so as to
ensure no issues arise in the future.
The proper steps taken are:
1.Legal Proceedings: Two months after making the
announcement, the legal process for the merger has begun.
According to Mint, the process is now underway and the paperworks will be submitted to the respective
agencies in the coming month.
In the domestic front, the deal will be stamped by DGCA, the ministry of Civil Aviation and the
Reserve Bank of India. Then the Competiton Commission of India will need to certify that the merger
will not effect consumer rights in the cou try. After this several smaller bodies such as Airport
Authority of India will need to be aproached to clear dues and redeem balances
After clearing the domestic front, the approval from foreign competition and antitrust regulators
must be received.
2.Decision on which authorities to apply to: In this instance, Air India and Vistara's legal teams are
deciding which authorities will be approached for regulatory approval. Due to SIA is involved in the
merger of Air India-Vistara carrier, regulators in the country will need to green-light the deal and SIA's
role. Hence, it is already decided to seek permission from the Consumer Commission of Singapore.
They are also looking at filings with the European Union, another major market for both airlines.
Their plans for US or any Middle Eastern nation has not been mentioned yet but they could be targets
given Air India and Vistara's exposure to the markets.
3.Vistara’s continuance or its end: Tata Group has not decided if it will retain the Vistara brand
beyond March 2024. While there will only be one parent carrier, it could still use both AOCs for
operations in the future. This may be decided in the coming months, but Tata is likely to favor one
brand for ease of operations and cost reduction.

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CHAPTER-6

FUTURE OF AIR INDIA- VISTARA MERGER

Nothing is certain in this accursed world, so, it is not possible to predict the exact future of the merger.
Whether it will be a success or a failure, only time will tell. But on the basis of the information
provided potential senarios for the future of the merger can be obtained. They are:

 End of Vistara Airlines: Vistara Airlines is likely to dissapear. The reason behind this
conclusion is that TATA Group will likely favour one brand for the particular sector to ease it’s
operations and cost reduction.
 Rivarly: Rivarly between IndiGo and the Merged Air India- Vistara is likely to happen as
before the merger IndiGo controlled around 52% of the market share which after the merger is
expected to fall by 14.%(approx).
 Legal conflicts: A great deal of legal suits can also occur as when a company starts its
operation after the merger it takes time for the employees to adjust to the changing work
enviroment which may hamper their productivity and due to this they may be unable to provide
great-in -flight experience; can cause boarding mistakes; tickets shuffleing or any other reason.
 Competitive Backlash: Whenever a new company tries to penetrate into the the market of
another company, it experiences a backlash as the company who controls that market share will
use any means to stop the new company from making a leak in his market share.
 Inner conflicts: It may be possible that the TATA Group and SIA may not see eye to eye with
each other regarding certain decisions, this may cause an inner conflict between them.
 Socail Backlash: This merger can also face a backlash from the society as after the merger
around 80% of the market will be held by the Merged Air India- Vistara and IndiGo and for the
remaning 20% there will be a great stuggle in which many companies will cease to exist, as a
result, many will lose their jobs.
Even if there may be some problems at first but as time will go by the merger will reach a stable point
and will likely be a successful venture.

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DATA ANALYSIS AND INTERPRETATION OF THE STUDY

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DATA ANALYSIS
1. Age wise Distribution of the Respondents:

No of respondents
Above 40
15-25

Here, the respondents are classified in

terms of their age. As we can see the
maximum number of respondents belong
to the age group of 15-25, followed by
age group of 26- 40. Least number of
26-40 responses has been received from people
of age group above 40.

2. Gender wise classification of the Respondents:

Male
No. of Respondents
Female

Here, the respondents are classified on

the basis of their Gender. From the
28%
chart it is clear that Male respondents
exceeds the Female respondents, i.e.,
here, Majority of the Respondents are
72% male.

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3. Profession of the Respondent:

Others

Retail Investors

Traders

Investment bankers

Teachers

Journalist

Businessman

Service

Chartered Accountant

Student

0 5 10 15 20 25 30 35 40 45

The chart represents the Profession of the respondents. While conducting the study, I came across
people who have more than one profession, so, the respondents were allowed to choose more than one
profession. Here the student category were the highest respondents.
4. Have the Respondents aware of the merger?

No. of Respondents

The chart represents how many of the

Respondents have actually heard
about the merger between Air India –
Vistara Merger. As the merger was
one of biggest deal in the aviation in-
dustry which may have a huge impact
on India’s economic development, it
was hardly expected that anyone
would know about it still there were
few respondents unaware of the fact.
The blue region represents the people
who were aware about the merger and
the red region represents those who
were unaware about it.

Yes No

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5. Respondents view about the merger

No. of Respondents

Here, the respondents were asked about their

point of view regarding the merger whether it
will be successful or not, to which most of
them agreed, represented by the blue portion.
The red portion represents the people who
doubt or are not sure about this merger’s
success.

6. Reason the merger will be successful:

Others

Involvement of TATA Group

Support from CAPA India

Nostalgia effect

0 5 10 15 20 25 30 35 40 45 50

The chart represents the reasons chosen by the respondents which they think will be the reason behind
the merger being successful. Most of the respondents have chosen that the merger will be successful
due to the involvement of TATA Group, reason behind this confidence is the trust build by TATA
Group for many years TATA Group is the one who has made impossible possible like with starbucks;
Landrover; Jaguar; etc. Moreover, both Air India and Vistara Airlines are a part of TATA Group and
after merging them together TATA has better plans for it.

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7. Will the merger benefit the Indian Aviation Sector?

The chart represents the view of

the respondent regarding the fact
whether the merger will benefit
the Indian Aviation Industry.
Mostly every respondent agreed
(shown in the blue portion)
except few (shown in the red
portion).

Yes No

8. Will IndiGo Airlines lose its market share?

No. of Respondents

Here, the Respondents were asked to say

'YES' or 'NO' regarding the fact that will In-
digo Airlines loose it's market share as a result
of the merger.It was the first time when all the
respondents unanimously agreed and said Yes
'YES'. No

100%

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9. Which airline companies will be the most effected?

25

20

15

10
Others
5 Spicejet
Akasa
0 Indigo
No. of Respondents
Kingfisher
Jet Airways

Jet Airways Kingfisher Indigo Akasa Spicejet Others

Her, the respondents have expressed their opinion regarding the airline companies who will be the
most effected because of the merger between Air India and Vistara Airlines. They were allowed to
choose more than one airline company in order to get their accurate view point. According to the
respondents Kingfisher Airlines will be the most effected, followed by Jet Airways and Akasha
Airlines while Indigo Airlines will be the least effected even after loosing some of its market share.

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INTERPETATION OF THE STUDY

 Air India- Vistara is likely to become the most dominant player in the aviation
industry after Indigo Airlines.
 Possibility of future rivalry between Air India -Vistara and Indigo Airlines.
 Involvement of the TATA Group is regarded as the plus point of the merger.
 Smaller Airline companies will be the worst affected.
 Delay or regulatory challenges could impact the timing and potential benefits of
the merger.
 Competitive pricing and improved customer service.

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LIMITATIONS OF THE STUDY

 The study is conducted by collecting data from a small sample size, which means, it does not

cover the view point of each and every individual in the economy.

 The future forecasting of the merger was based on individual beliefs and on the basis of the

limited data obtained.

 Limited access to information.

 Reliability of the data

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CONCLUSION
The possible merger of Air India and Vistara could be a significant development in the Indian aviation
industry. Both airlines have their strengths, and a merger could bring about the synergies of combining
them.

Vistara has established itself as a premium carrier with a focus on customer experience, while Air India
has a robust global network and significant government support. Combining these strengths could
create a formidable player in the Indian aviation market, especially in the face of increased competition
from low-cost carriers.

However, a merger of this scale could also present significant challenges, including integrating two
different corporate cultures and managing the workforce. Additionally, the financial implications of the
merger would need to be carefully evaluated.

Overall, a merger between Air India and Vistara could be a game-changer for the Indian aviation
industry, but a lot of work would be required to make it a success.

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BIBLIOGRAPHY
REFERENCE WEBSITES:
 https://m.economictimes.com/
 https://www.businesstoday.in/
 https://www.livemint.com/amp
 https://www.news18.com/amp/
 https://www.hindustantimes.com/amp
 https://www.thehindubusinessline.com/
 https://www.etnownews.com/
 https://www.financialexpress.com/

REFERENCE BLOGS:
 marketing research.blogspot.in.
 marketingmerchant.bolgspot.in.
REFERENCE YOUTUBE CHANNELS:
 Khan GS Research Centre
 The Mystica Land
 moneycontrol
 Curiously Education
 WION
 Business Standard
 CNBC TV
 CA Rahul Malodia: Business Coach

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QUESTIONAIRE

1. Name:
2. Age:
15- 25
26- 40
Above 40
3. Gender:
Male
Female
4. Profession:
Student
Chartered Accountant
Service
Businessman
Journalist
Teachers
Investment Bankers
Traders
Retail Investors
Others
5. Have you heard the news regarding Air India and Vistara merger?
Yes
No
6. Do you this Merger will be Successful?
Yes
No
7. Why do you think the merger will be successful?
Reason 1: Nostalgia effect,
Reason 2: Support from Indian Aviation Advisory body CAPA India
Reason 3: Involvement of TATA Group
Reason 4: Others
8. Will this benefit the Indian Aviation Sector?
Yes
No
9. Do you think after the merger Air India can make IndiGo to lose its market
share?
Yes
No
10. Select among the following the name of the company who will be most affected
from this merger
Jet Airways
Kingfisher Airlines
IndiGo
Akasa Airlines
Spicejet
Other Airlines
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