Air India's code shown on Vistara flights: How should passengers deal with the confusing codeshare?

Vistara's merger with Air India leads to Air India's code being increasingly seen on Vistara flights, along with price differences that confuses passengers.

For the last few days, multiple booking engines like Google Flights were showing Air India's code on Vistara flights, including Air India's own website, for both domestic and international flights.

The codeshare marks the beginning of the end of Vistara due to its merger with Air India.

This marks the beginning of the end of Vistara due to its merger with Air India.

The merger has to be completed by March 2025 as per the NCLT order, but all indicators show that it would get completed much earlier.

This is because it would help Air India plan a better 2025 summer by avoiding overlaps of flights and by utilising the additional capacity in an effective manner, with greater chances of breaking even.

However, many booking engines are currently showing two departures at the same time; One as a Vistara flight and another as an Air India flight.

In almost all cases, the Air India flight is more expensive.

All of this is bound to create confusion in the minds of the passengers as to what should be done.

Codeshare: the first step in an ongoing merger

A codeshare is an agreement between two air carriers where one markets the flights and the other operates the flights.

In this case, the operating carrier is Vistara while Air India is the marketing carrier.

Therefore, the flight number on the Flight Information Display Screen (FIDS) will reflect both the codes; Vistara's “UK” and Air India's “AI.”

Codeshare is a common practise where some seats are allocated to other carriers for selling and in most cases, the marketing carrier does its own revenue management for the seats.

This is why observations came about that Air India-coded flights are more expensive than Vistara-coded ones, even when Vistara is operating the flight.

Why was the codeshare necessary and why is it not on all flights yet?

Though it looks like the codeshare is on flights that Air India does not operate, this also includes the first set of flights that will eventually move from Vistara to Air India.

The airline had earlier informed that it will shift employees and planes in batches, with a few mandatory post holders remaining with Vistara till the last flight.

The case of Air India and Vistara is unique since its a merger. Such cases are complex and regulatory requirements also require other entities like lessors to be on board.

A complete shift overnight is nearly impossible. Therefore, codesharing is done as it encourages a gradual shift, which can help test both internal and external systems. Both Air India and Vistara are well versed with codeshare since both have extensive codeshare and interline arrangements with foreign carriers already.

Eventually there could be a bigger shift where Vistara does not sell the flight, but only Air India does. However, the flight operates on a Vistara aircraft, with Vistara crew and a Vistara call sign.

How should passengers deal with the confusing codeshare?

Passengers may be very confused seeing two flights at the same time; One showing Vistara and another showing Air India but with different fares, as now is the best time to book flights for the Diwali holidays before airfares rise to new heights.

However, those booking can go ahead and book the flights as desired. This includes the lower-priced Vistara ones as the airline has to honour all the bookings it has received, even if it ceases to exist.

This is because Tata - SIA airlines which does business as Vistara has a valid operating license up to December 14, 2024.

This license can be renewed as well, but even if the airline doesn't do so and the merger process is completed by then, the booked flights will become Air India's responsibility to fulfil, with a new flight number and an Irregular Operations (IRROPS) notification for the passenger.

The airline however, has not yet come out with any details or information for the passengers about this codeshare.

Interestingly, Jet Airways and JetLite did something similar exactly 10 years ago. While Air India is doing this in preparation for the merger of Vistara with itself, Jet Airways had to do it for exactly the opposite - not being allowed to merge Jetlite with itself.

While both Vistara and Air India have remained silent about this move, it is important that the airport teams are geared up to handle the change as typically codeshare flights do not show up in the flight status for marketing carriers and that could further create confusion for flyers.

This is a short term arrangement till the merger is complete and the number of flights under codeshare will only go up from here on, till the planes start moving from Vistara to Air India in the days to come.