Mint Explainer: In Vistara's rise, a tale of changing India4 min read . Updated: 07 Feb 2023, 05:11 PM IST
- The airline has won market share and turned a profit. Retiring it after the Air India merger may hurt
Airlines worldwide are poised for a smart recovery in 2023 with an expected surge in air traffic. Indian carriers are looking up as well, as indicated by the December quarter numbers from IndiGo and Vistara. Still, the remarkable rise of full-service airline Vistara over the past year or so stands out: It became India’s No.2 carrier by market share in July, and made a profit in Q3. Full-service carriers such as Jet Airways, Kingfisher and Air India have struggled in India's price-sensitive market. Vistara’s success may be an early indicator of India’s growing, prosperous and confident middle class moving up the value chain. It gives the Tatas plenty to think about. Does it make sense to retire a rising brand like Vistara, and subsume it into a fading brand like Air India through a merger?