Vistara Finally Secures Permit To Fly

Monday, 15th December 2014 at 05:03am

Vistara, the brainchild of Tata Sons and Singapore Airlines, finally secured its permit to fly and is now raring to take off the ground after a long wait.

Tata Sons and Singapore Airlines struck a deal in September 2013 to set up a new airline following the liberalization of India's aviation industry.

In September 2012, the Indian government amended its FDI policy on aviation business following the prolonged aviation crisis that hit the country which sent Kingfisher Airlines into bankruptcy. The amendment in FDI policy paved the way for foreign investors to own up to 49% stakes in a local airline venture, from the previous 24%.

The new full-service carrier is now in the thick of things as it prepares to launch its maiden service anytime now.

The airline will initially operate a fleet of two leased narrow-body A320 aircraft while awaiting delivery of three more by March 2015.

Vistara will operate from its hub in Delhi and will initially cover a network of 9 domestic destinations which include Bangalore, Mumbai, Chandigarh, Hyderabad, Goa, Jammu, Patna, and Srinagar during its maiden operations.

The air operator's permit (AOP) is only granted to an airline after it satisfies the requirement set by DGCA, the aviation regulator of India.

The airline's CEO, Phee Teik Yeoh, expressed his pleasure and gratitude to the Indian government, particularly the Ministry of Civil Aviation as well as the aviation regulator.

The airline's Chairman, Prasad Menon, expressed his excitement upon receipt of the permit saying it is an important milestone for Vistara as it is now about to fly.

Tata Sons owns 51% of the joint venture, while the rest, or 49%, is held by Singapore Airlines.

Vistara is the third full-service airline to operate in India after Jet Airways and Air India, the state flag carrier.

For its maiden operations, it will operate about 87 flights during the first year and gradually increase them up to 300 flights during the fourth year.

By: Pete Lee.