Active Stocks
Thu Mar 28 2024 14:19:25
  1. Tata Steel share price
  2. 156.15 2.16%
  1. HDFC Bank share price
  2. 1,456.50 1.10%
  1. ITC share price
  2. 432.80 1.12%
  1. Power Grid Corporation Of India share price
  2. 278.05 2.58%
  1. State Bank Of India share price
  2. 758.60 3.34%
Business News/ Companies / Vistara operates its first flight from Delhi to Mumbai
BackBack

Vistara operates its first flight from Delhi to Mumbai

istara is beginning operations with a fleet of A320-200s with 148 seats and three-class configuration

Tata-SIA Airlines chairman Prasad Menon (left) receives first boarding pass from Vistara CEO Phee Teik Yeoh.Premium
Tata-SIA Airlines chairman Prasad Menon (left) receives first boarding pass from Vistara CEO Phee Teik Yeoh.

New Delhi/Mumbai: Tata Group launched its full-service airline Vistara in partnership with Singapore Airlines Ltd (SIA) on Friday, more than 60 years after the Indian government nationalized the group’s airline business and following two abortive attempts to return to the skies.

The airline’s first Airbus A320 flight, from Delhi to Mumbai, took off at 12.52pm and landed at 2.46pm. Minister of state for aviation Mahesh Sharma inaugurated the flight, which was welcomed in Mumbai by Tata Sons Ltd chairman Cyrus P. Mistry.

“Witnessing the launch of Vistara, whose roots are entwined with the history of Tatas, is indeed a proud moment. As an offering of Tata and SIA, I am confident that Vistara will focus on delivering service excellence to its customers and set new industry standards," Mistry said.

“The Indian aviation sector is on the cusp of transformation and I hope the airline scales greater heights in times to come," he added.

The name Vistara comes from Vistaar in Sanskrit, which means limitless expanse, and draws inspiration from the brand’s domain—the limitless sky.

Based in New Delhi, Vistara is beginning operations with a fleet of brand new Airbus A320-200s with 148 seats. Vistara aircraft will have a three-class configuration with 16 business class seats, 36 premium economy class seats and 96 economy class seats.

Vistara is the only airline go have three classes in India with fares of Delhi-Mumbai of approximately 6,500, 9,200 and 25,000, respectively. The rival airline fares for the same route during that period start at 5,000 onwards.

“It is the first time we will be seeing a three-cabin format on domestic routes. We have already seen a very good initial response to the premium economy segment, and anticipate strong demand for this class, as it fills a very large price gap between economy and business class fares," said Sharat Dhall, president, Yatra.com, an online travel agency firm.

Tata Sons holds the majority stake of 51% in Vistaara and SIA the remaining 49%. It’s the third full-service airline operating in India after state-run Air India Ltd and Jet Airways (India) Ltd.

Its entry, connecting Delhi with Mumbai and Ahmedabad initially, is expected to intensify competition in the airline industry at a time when Indian carriers are fighting high costs and are weighed down by losses and debt.

According to consulting firm consulting firm Capa Centre for Aviation, India’s airlines had posted an estimated loss of 10,660 crore in FY14, which was 76% higher than in the previous fiscal year, and the worst result since FY08.

Over the last seven years, Indian airlines have lost about $10.6 billion, according to Capa. These years also saw the closure of Kingfisher Airlines, Air Deccan (which had merged with Kingfisher), Deccan 360, Air Mantra, MDLR Airlines, Paramount Airways and Indus Air.

Chief executive officer Phee Teik Yeoh said Vistara would keep costs in check through disciplined control of non-customer facing expenses and innovative use of technology.

“We commissioned an extensive consumer research to understand the pain points and needs of the Indian travellers and have designed our offerings based on these findings...," he said.

It was Tata Airlines, a division of Tata Sons, that opened up the aviation sector in India in 1932. In July 1946, Tata AirLines converted into a public company and renamed Air India Ltd. Air India was nationalized in 1953.

In 2000, SIA and Tata Sons abandoned a joint attempt to buy a 40% stake in Air India. Political resistance and corporate rivalries were blamed for the Tata group abandoning the project. An earlier attempt by the two companies to start an Indian airline with 40% equity contribution by SIA was also aborted.

Tata Sons also has a low-fare joint venture with Kuala Lumpur-based AirAsia Bhd.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 09 Jan 2015, 09:33 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie