Vistara To Commence Operations This Year

Monday, 25th August 2014 at 10:50am

India's aviation industry is still reeling from the worst crisis in recent years, but that seems to be not an issue for the new start-up who is set to debut this year.

Vistara, which is a joint venture between India's largest business conglomerate�"Tata Sons and Singapore Airlines, seems undaunted with the present situation of the country's aviation sector.

The upcoming airline, whose name means 'limitless expanse' in Sanskrit, cast a different look at the aviation industry in the country. Even with the discouraging market condition in India, the owners of the airline are planning to launch Vistara as a full-service airline, tentatively this coming October making it the newest player in the country's commercial aviation sector.

After AirAsia India, Vistara is the second airline to be formed between a local partner and foreign investor, following the amendment of the country's FDI law in 2012.

According to the airline executive, CEO Phee Teik Yeoh, Vistara is going to offer 2.5 class seats, namely, business class, premium economy, and economy.

Despite the less-than-rosy future of India's travel market, Vistara officials are optimistic about their venture and even projected that they will be able to attract market rather gradually.

India is said to be among the fastest growing travel markets in the world in the next 10 years, thanks in part to its fast-growing middle class population that is seen to drive the demand. India currently has an estimated total population of 1.2 billion, at least half of which is said to have the capacity to travel by air.

Currently, India has one of the lowest annual penetration rate in terms of air travel per capita, at 0.07. The figure is way below the average rate among developed economies such as United States, which has a rate of 2.49.

Vistara officials see an opportunity in the low penetration rate in India and they are even bullish in the country's aviation future, prompting them to pursue its launch this year.

The airline will initially keep a fleet of five aircraft during its maiden operations one of which, an A320-200, is due to arrive in September. It will operate from its hub in Delhi with routes to Mumbai, Bangalore, Hyderabad, and Ahmedabad during the first year of operations.

By: Pete Lee.