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Monday, 15 June 2015

Is premium becoming a problem for Vistara?

Mumbai: Within three months of its launch in January, Vistara, the newest Indian airline, has a fleet of six Airbus A320 aircraft, with which it operates 197 flights in a week. AirAsia India, which started operations a year back, does 182 flights a week with five Airbus A320s. When it comes to carrying passengers, the story becomes a little different. Between January and March, Vistara recorded occupancy of 53 per cent, way short of AirAsia India's 74 per cent in its first three months of operations last year and industry average of 83 per cent (Janurary to March).


Though Vistara's occupancy improved to 67 per cent in April, it is clear that it won't be a cakewalk for the airline owned by Tata Sons and Singapore Airlines.

Vistara has found it challenging to sell its premium product in a market which is dominated by no-frill airlines. It offers as much as 35 per cent of its seats on every flight in the business and premium economy categories. Its seat configuration is: 16 business, 36 premium economy and 96 economy. In contrast, Jet Airways offers just 7 per cent of total seats for business category.
Read news in full 02/06/15 Aneesh Phadnis/Business Standard
Vistara

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