Vistara-Air India Merger: Can Opposite Brands Align?

If one understands and notes, airline brands have had their set of rainy days. 

Illustrious carriers such as Kingfisher Airlines, Pan Am, Air Berlin, and Swiss Airlines lost their lustre and eventually, their operations were phased out too. The revival of Jet Airways too, has been quite of a debate. With the recent Vistara-Air India merger in full swing and the constant chatter about it, a thought strikes the mind – the premium image of Vistara and Air India’s legacy, will it be a good combination for the airline brand to sustain, post the merger?

Everything Experiential spoke to brand mavens about the brand positioning of Air India being affected by this amalgamation of Vistara-Air India as well as the implications of this merger on the experiential aspect of the brand.

Affecting brand positioning

The coming together of these two brands – Vistara and Air India - with a unique set of brand values of each, is undoubtedly expected to affect the overall brand positioning of Air India, following the merger.

According to Jagdeep Kapoor, Founder, Chairman & Managing Director, Samsika Marketing Consultants, the merger of these two brands will double impact the Air India brand’s positioning. “The upscale, premium image of Vistara will positively rub off on Air India. The legacy and positive history of Air India will obviously be retained by Air India. Combining the double impact will be a fine combination for the Air India brand.”

Tarun Singh Chauhan, Founder, TSC Consulting finds it bizarre to kill a premium brand to merge with a legacy and fatigued brand. He fails to understand why two brands cannot coexist. 

He underscores, “Air India is a bad product. The aircrafts are in bad shape, the staff is not the best in class and the service is pathetic. Vistara, after the death of Jet Airways occupied the space that the latter had vacated. With this one move, they have an absolutely perfect brand. To fix Air India will take at least eight to 10 years, it’s an elephant that needs to learn to dance.”

Shaping brand experiences

When we talk about brand experiences, just like any other brand, Vistara and Air India too, have been known for their distinct brand experiences and consumer engagement techniques. With this merger, how would the brand experiences offered in the future by it, be able to find a place in the consumer’s perception? And what should brand Air India focus on in terms of offering unique experiences to maintain consumer brand loyalty and gain new consumers?

Chauhan, like almost everyone, comprehends that these are two conflicting brands - they talk to different consumers, and possess different flying experiences, respectively. 

“It is easy to downgrade Vistara to Air India standards. But it is nearly impossible to upgrade Air India to the Vistara brand experience. It’s a tough one, and would be interesting to wait and watch,” he emphasises. 

In Kapoor’s opinion, brand experience is a six-fold process, as per the Samsika Brand Experience Module - before purchase, during purchase, after purchase, before use, during use and after use. He fathoms that while on all six counts, both Vistara and Air India have their strengths in terms of brand experience. 

“Before purchase and during use - these experiences of Vistara, if inculcated, could enhance the Air India brand experience and brand loyalty. The before-use and after-use experience of Air India, in its original form, would help get new consumers, because of its wide network,” he adds.

Kapoor also points out that during purchase and after purchase, both the brands are at par. “The enhanced, royal, regal, Maharaja experience, could make Air India a star (Tara) in the skies, in terms of brand positioning. This ‘Pair’ India, could upgrade Air India,” he concludes.

Neha Kalra

BW Reporters She is the Senior Editorial Lead at Businessworld and majorly covers pieces on advertising, marketing, branding and experiential marketing. She writes closely for BW Marketing World and Everything Experiential.