Air India has cut away from the existing Air India co-brand cards with SBI Cards and the Vistara co-brand cards with SBI Cards, Axis Bank, IDFC First Bank and IndusInd Bank. It is working on a new proposition and may offer it to one of these banks or someone new altogether, given that they are currently out in the market shopping for a new banking partner to launch their co-branded credit cards.

In the meantime, the Bank has put the existing banks on notice, and the banks have put their customers on notice in the chain. How it works now is that anyone who paid the annual fee gets the card’s benefits. But anyone who is going to have a renewal of the card now will not see the ticket benefits and the status benefits anymore, and will also not be charged the annual fee. They will still continue to earn their miles, though, by swiping the card.

Here are the notices from all the banks:

• Axis Bank
• SBI Cards
  • Renewal benefit (1 Economy Ticket Voucher) and Milestone benefit (1 Economy Ticket each, on annual spend of INR 1.25 Lakhs, INR 2.5 Lakhs and INR 5 Lakhs) on Club Vistara SBI Card will be discontinued for all cards due for renewal after 01 April 2025. The Renewal Fee of INR 1499 will be waived off during card renewal in such cases. Cardholders whose card renewal date precedes 01 April 2025 will still be able to avail the Renewal and Milestone benefits, if, and when they become eligible for the same. Renewal Fee of INR 1499 will also be chargeable in such cases.
  • Renewal benefit (1 Premium Economy Ticket Voucher) and Milestone benefit (1 Premium Economy Ticket each, on annual spend of INR 1.5 Lakhs, INR 3 Lakhs, INR 4.5 Lakh and INR 8 Lakhs) on Club Vistara SBI Card PRIME will be discontinued for all cards due for renewal after 01 April 2025. The Renewal Fee of INR 2999 will be waived off during card renewal in such cases. Cardholders whose card renewal date precedes 01 April 2025 will still be able to avail the Renewal and Milestone benefits, if, and when they become eligible for the same. Renewal Fee of INR 2999 will also be chargeable in such cases.
• IndusInd Bank will replace the card with a new one rather than encourage spending on it in April 2025.
• IDFC First Bank did not publicly post a notice

What should we do with the card going forward?

All the banks have the same modus operandi. The card fee (joining or annual) is compensated by providing status and tickets for the Club Vistara co-brand cards. The airline has negotiated with the card issuers that the ticket and status benefits will be withdrawn for renewed cards as of April 1, 2025. Remember, everyone with status already got a year-long extension during the merger. So that compensates. Card Sourcing was already shut as of October 2024.

Just like the uncertainty with Axis Olympus, people are rushing to cancel their cards. Or at least not using them. They later want to come back in the fold but there is no way.

Hold on to these cards for now. Here, I enlist why:

1. Whatever bank launches the new co-brand partnership, it might conduct a card-to-card campaign to transition existing cardmembers of other Air India/Vistara co-brand cards.
2. The card issuers waive the fee, so it does not impact your pocket to hold on to the card. What it does to your fidgetiness is a different issue altogether.
3. Even if you want to move on from the card, don’t cancel it—transition to another card from the same issuer. Banks will be interested in retaining your business, and you might get a good card. That is what IndusInd Bank is doing. Maybe it does not see itself in the contention for the new card business.

That is why I am holding on to my two co-branded cards for now. Given that there is no slot problem with the banks I hold the cards with, there is no reason for me to transition out at the moment.

Bottomline

Your Club Vistara co-brand cards will no longer carry value, but that does not mean they are worthless. Hold on to them. If one of these banks wins the mandate to issue the new Air India co-brand cards, they might extend you an olive branch to get the business. Even otherwise, it does not harm to hold the cards for a few months to see what the new version brings.

What are you doing with your Vistara co-brand cards? Keep them or killing them? Any other ways of looking at things that I am missing out?

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