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Home Business & Finance

Air India-Vistara Merger: What it holds and how it will impact cardholders?

by admin
September 10, 2024
in Business & Finance
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Air India-Vistara Merger: What it holds and how it will impact cardholders?
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In May 2024, Vistara Airlines announced its merger with Air India, which is set to be finalized in November 2024. This merger represents a significant shift for both airlines and their loyal customers, especially for credit cardholders who have preferred the benefits of Vistara’s loyalty program, Club Vistara.

After this merger, Club Vistara will combine with Flying Returns from Air India, and Club Vistara (CV) Points earned through your credit card will automatically be converted to Air India Flying Returns points at a 1:1 ratio, with extended validity. Additionally, users will gain access to 20+ airline partners through the Star Alliance for reward points redemption

As we approach the final stages of the merger, cardholders should be aware of several important changes and benefits.

Air India-Vistara Merger: What it holds and how it will impact cardholders?

Club Vistara and Flying Returns Merger

One of the biggest changes following this merger is the integration of Vistara’s loyalty program, Club Vistara (CV), into Air India’s Flying Returns program.

CV Points: Starting November 12, 2024, the accumulated CV Points will be automatically transferred to Flying Returns points at a 1:1 ratio with an extended validity of a year.

Tier Status: The tier status will be allocated based on the current Club Vistara status and cumulative points of both programs.

Complimentary Ticket Vouchers & Class Upgrades: One class upgrade and complimentary ticket vouchers will be transferred to Flying Returns with the existing validity.

Link Club Vistara & Flying Returns Account

However, in order to make use of these benefits, Vistara cardholders must link their Club Vistara and Flying Returns accounts. Cardholders can either opt out of the program or follow the below-mentioned steps to link their accounts:

Step 1: Log in to your Club Vistara account.

Step 2: Under “My Account,” click on “Link Accounts.”

Step 3: Enter 9-digit Flying Returns Membership ID and submit.

Step 4: Users will receive a confirmation message on successful submission.

Note: Users who do not have an Air India Flying Returns account will have to create one and then initiate the process.

What happens if you don’t link your Club Vistara and Flying Returns accounts?
If you do not manually link your Club Vistara and Flying Returns accounts, the accounts will be merged automatically based on certain key personal details, including first name, last name, email address, date of birth, and phone number. However, if the details don’t match, a new Flying Returns account will be created to transfer your existing CV Points and vouchers. In cases where a single phone number is linked to multiple accounts, users are required to merge these redundant accounts manually.

Migration of Club Vistara Points & Complimentary Ticket Vouchers

Starting from September 3, 2024, bookings with Vistara for travel on or after November 12 will be discontinued. For travel after November 12, users can make bookings with Air India and earn Flying Returns points by either enrolling in the Flying Returns program or using their existing account. Since this transition restricts the use of CV Points or vouchers until November 11, 2024, the following compensatory benefits will be offered to the cardholders:

Compensatory CV Points: CV Points expiring in September or October 2024 will be reissued as compensatory points and transferred to Flying Returns. These points will have a minimum one-year validity from the migration date, regardless of their original expiry date.

Complimentary Ticket Vouchers: Ticket vouchers valid beyond November 11, 2024, will be extended for three additional months and transferred to Flying Returns.

On-demand Vouchers: Any vouchers not issued by November 11, 2024, will be automatically transferred to Flying Returns with a validity of 9 months.

Details on Co-branded cards

Existing Vistara cardholders will continue to avail benefits until March 31, 2026, as per the current card program’s terms and conditions. As a result, annual card membership renewals will not be processed after March 31, 2025. Additionally, the issuance of new Vistara co-branded credit cards will be phased out by September 30, 2024. For IDFC FIRST Bank customers, this date is earlier, with new card issuance ending on September 5, 2024. These dates may vary depending on the policies of different card issuers.

How will these changes impact cardholders?

The merger between Vistara and Air India is a major shift for frequent flyers, especially for Vistara loyalists. While the transition brings changes to loyalty programs, cardholders can expect some positive outcomes from this merger:

Extended Point Validity: With CV Points being transferred to Flying Returns with an extended validity period, cardholders will have more time to redeem their points.

Continued Benefits: Vistara cardholders can avail the existing benefits till March 2026, offering cardholders ample time to adjust to the new program.

Increased Redemption Options: The transition to Air India’s Flying Returns program is beneficial for Vistara cardholders, as it offers enhanced flexibility with access to over 20 airline partners through the Star Alliance, compared to just five with Club Vistara.

Despite this merger, cardholders can still earn a decent value back through a broader range of redemption options, extended point validity, and continued tier status.



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