Back‘No need for promoter funds soon’
Vistara aims to expand its fleet from 53 aircraft to 60 by the end of 2023 , and further to 70 by 2024, Kannan said, adding the airline has been promised all pending deliveries of Boeing 787s by March 2024
PremiumVistara does not plan to seek any fund infusion from its promoters Tata Sons and Singapore Airlines for three to six months, on the back of a strong December quarter.
“We can manage on our own," said chief executive officer Vinod Kannan said, after the airline on Monday said it broke even in the December quarter for the first time since inception in January 2015. The airline also crossed $1 billion revenue mark and has remained Ebitda-positive in the current fiscal year so far.
Vistara aims to expand its fleet from 53 aircraft to 60 by the end of 2023 , and further to 70 by 2024, Kannan said, adding the airline has been promised all pending deliveries of Boeing 787s by March 2024.
Vistara is awaiting clarity from its promoters on the planned merger, and will be able to take a decision on expanding capacity via a fresh order of aircraft post that, he said.
While the average ticket price and yield have softened from the levels in the December quarter, Kannan is optimistic of a correction in fuel prices to ease cost pressure in the March quarter, traditionally a weak one in terms of travel sentiment.
“We are hopeful of breakeven on operating profit in Q4 too," he said.
For the quarter ended December 2022, the airline grew its capacity by 37% and passengers by 47% compared to the same period last year.
In line with its peers in the market, the airline also plans to increase its international operations from the current share of 30-35%. The airline currently flies to 31 domestic and 12 international destinations.
On 29 November, Singapore Airlines and Tata Group announced a merger between Air India and Vistara, with Singapore Airlines holding 25.1% of the merged entity. The merger is expected to be completed by March 2024. Vistara is a 51:49 joint venture between Tata Group and Singapore Airlines.
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