Explained | Why Vistara is facing massive delays

Owned by the Tata group and Singapore Airlines (SIA), Vistara Airlines on Monday announced that flight operations will be temporarily reduced due to non-availability of crew.

The airline has seen over 100 flight delays and cancellations in the last week and nearly 50 flights were cancelled on Monday alone.

Vistara released a statement on Monday that said, "we have decided to temporarily reduce the number of flights we operate to ensure adequate connectivity across our network."

The airline further stated that it will deploy larger aircraft on select domestic routes, and provide alternative flight options or refunds to affected customers.

Vistara is presently undergoing a merger with Air India which has reportedly lead to pay cuts and the current situation relates to discontent among employees regarding the same.

Here's a look at the Vistara-Air India merger and how it relates to delays

Vistara-Air India merger

On November 29, 2022, Tata group announced the Vistara-Air India merger.

As part of the merger, SIA also invested Rs 2,059 in Air India and acquired shares worth 25.1 per cent.

The merger is estimated to be completed by March next year and as it nears, issues within the organisation are on the rise.

Multiple reports state that through the merger, employee pay structure will see a change, they will receive a fixed salary for 40 hours instead of the previous 70 hours. The change in pay structure has resulted in discontent among employees.

How non-availability of crew corelates with the new pay structure

Times of India reported that a number of Vistara pilots took leaves citing different reasons in the past few months which led to high cancellation and poor performance.

Last month, pilots were given an ultimatum to accept the new pay structure or give up the one-time payout that came with it and also the opportunity to work with Air India post merger, reported Indian Express.

The issue of pay structure and the discontent among crew members has led to the absence of employees which is now leading to the delay and cancellation of flights.

On Tuesday, civil aviation ministry asked for a detailed report from the airline and said that it was monitoring a surge in flight cancellations by as the airline grapples with a shortage of pilots.

The Tata group is currently merging its budget airlines, Air India Express and AIX Connect (formerly Air Asia India). Upon the completion of both mergers, the Air India group will consist of a full-service carrier, Air India, and a low-cost airline, Air India Express.

(With Reuters inputs)