Two years is not a long time in the life of an airline. Born of proud parents, Tata and Singapore Airlines – two global giants with aligned values – the carrier has been transforming the air travel experience and striving to reignite the love for flying for every traveller. R KRISHNAN takes a close look at how, since its inception in January 2015, Vistara has demonstrated its unique value proposition to customers through its innovative offerings and its future plans.
Tata Sons and Singapore Airlines has made a mark in the Indian skies. As the name denotes Vistara in Sanskrit means unlimited wide expanse. This young airline, perhaps, wanted to live up to its name faster than it flew. However, the infrastructure limitations – mainly slots in Mumbai airport – and a host of other factors reduced its speed. Fortunately, this gave its management time to rethink and reinvent that is now becoming evident from the new fervour with which it is raising the bar of competition.
Like all other start-up airlines which flew into the red-zone losing money, Vistara was and is no different. As per market information, during the first year of its operations 2015-2016, Vistara earned a revenue of ₹713 crore against expenses of ₹1113 crore leaving a loss of ₹400 crore. This, according to industry sources, was due to higher expenses on maintenance, ground handling, sales and distribution. One may well ask why an airline should make losses at a time when its lifeline – fuel price was at an all-time low especially when it accounted for nearly 48 to 50 per cent of Indian domestic airline industry. No wonder then that even previous huge losers like Jet and Spice made profits besides IndiGo. These events came to the media’s notice when the Vistara management made a presentation to Tata Sons, the board majority stakeholder in the airline. The airlines unit cost defined Cost Per Available Seat Kilometer (CASK) in 2015-16 was ₹5.28 and Revenue Per Available Seat Kilometer (RASK) was ₹3.28 with maintenance cost accounting for 14 per cent of the total cost. The promoters informed the gap between the operation cost and revenue accrual would narrow following new measures taken to cut cost over the next 12 to 24 months.
This story is from the April 2017 edition of Cruising Heights.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 2017 edition of Cruising Heights.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
India's space economy set to soar
India's burgeoning space economy could see a substantial increase in its global share by 2040. At present, India's space sector contributes a modest $8 billion to the overall cake.
JettWings leads the way in UDAN 5.3
JettWings Airways has emerged as a frontrunner in the aviation industry, solidifying its position as a leading private operator under the UDAN RCS 5.3 scheme.
Sock drying to underwear adventures: Laundry tales at 30,000 feet
Picture this: you're settled into your first-class seat, ready for a smooth and luxurious flight with United Airlines. But as you glance around, you notice something that makes you do a double-take.
PLETHORA OF AIR TRAVEL ACTIVITY IN THE INDIAN SKIES
The Northern Summer schedule for 2024 took off on March 31, 2024, ushering in a rush of air travel activity. With DGCA's seal of approval on 24,275 weekly departures, the skies buzzed with an average of 3,467 flights daily. However, on the inaugural day, airlines only managed to execute 3,035 scheduled domestic flights, representing a modest 87.5 per cent of the approved schedule. Delving into the nuances of this aviation landscape, an exclusive analysis by aviation analytics company Cirium unveils fascinating insights into the longest and shortest flights crisscrossing the Indian skies.
Agnibaan SOrTeD rocket launch postponed again
Chennai-based space start-up Agnikul Cosmos called off the maiden launch of its 3D-printed, semi-cryogenic Agnibaan rocket about 129 seconds before lift-off citing communication in the onboard hardware.
Pushpak RLV-TD successfully lands autonomously
ISRO achieved another significant milestone in reusable launch vehicle (RLV) technology with the successful landing of Pushpak (RLV-TD), the winged vehicle, autonomously on the runway.
TIME FOR CREDIBLE ROTARY-WING CAPABILITIES
With tactical-level challenges looming in India’s neighbourhood, it is time for the Indian armed forces to rapidly brush up on rotorcraft capabilities. A Special Report
"PAKISTAN INTERNATIONAL AIRLINES: A TROUBLED LEGACY IN NEED OF REVIVAL"
Pakistan International Airlines PIA), once renowned for its slogan Great People to Fly With,’ has a storied history of contributions to the aviation industry. despite its illustrious past, PIA has faced challenges in recent decades, witnessing a decline from its former glory. This downward trajectory has prompted concerns about the airline's sustainability and competitiveness in the modern aviation landscape. The Pakistan government is now preparing to privatise the
Qatar explores major widebody order with Boeing, Airbus
Qatar Airways is reportedly in preliminary discussions with both Boeing and Airbus regarding a potential order of up to 150 widebody jets to modernise and expand its fleet as it needs to tackle the issue of an ageing fleet for long-distance.
"Embraer achieves ETOPS-120 certification for E2 Series
Embraer recently achieved a significant milestone with the acquisition of 120-minute ETOPS (Extended-Twin Engine Operations Performance Standards) approval for its E190-E2 and E195-E2 aircraft.
