One year after the historic Air India-Vistara merger, the combined airline faces a mixed bag of achievements and challenges, revealing that the turnaround of Air India remains a work in progress. While initially expected to accelerate, the merger’s post-integration trajectory has proceeded at a slower pace than industry observers anticipated.

Experts cite several contributing factors, including supply chain disruptions, volatile market conditions, and evolving geopolitical pressures, all of which have affected operational efficiency and growth plans. At the time of the merger, the airline showcased a combined fleet of 298 aircraft, including Air India Express planes, with 208 assigned to the Air India-Vistara entity. A year later, the fleet has contracted to 187 aircraft, with more scheduled to leave service.

Several key developments led to this shrinkage: a tragic Boeing 787 crash in Ahmedabad, divestment of legacy B777-200LRs, and lease expirations of former Delta B777-200LRs. Additionally, the six B777-300ERs announced from Singapore Airlines never entered service. To streamline operations, Air India has started retrofitting A320neo aircraft from two-class to three-class configurations to match Vistara planes.

Network operations have also been affected. The combined airline initially served 90 domestic and international destinations with over 5,600 weekly flights. By November 2025, weekly flights declined to 4,823, according to Cirium data. While services to Washington were suspended, the airline added flights to London Heathrow and expanded domestic coverage to cities such as Bhuj, Gaya, and Jodhpur. Codeshare agreements with carriers like Kenya Airways and Air Astana have also extended Air India’s reach.

Air India’s Vihaan.AI program aims for a 30% group market share within five years. The combined entity initially approached this target, reaching 29.2% in September 2024 before dropping to 26.4% in December 2024. As of September 2025, the domestic market share stood at 27.4%.

Training and talent development remain a priority. Air India inaugurated simulators in Gurugram in partnership with Airbus, but the planned aviation academy at Amravati, Maharashtra, remains non-operational. Aircraft refits have experienced delays, including the 27 A320neos and several Boeing 777s, pushing back the timeline for delivering a modernized fleet.

Looking forward, the airline expects Boeing 787-9 and Airbus A350 aircraft to enhance competitiveness, attract more international passengers, and offset currency depreciation challenges affecting Indian carriers like IndiGo. Despite these strategic moves, Air India still faces the daunting task of fully integrating Vistara’s operations and achieving the ambitious targets set at the time of the merger.