Vistara and AirAsia India, airline ventures of India's biggest conglomerate Tata Group, aim to boost their fleet sizes to 20 planes within a year and launch international services after the country overhauled aviation rules, two people familiar with their strategy said.
The Indian government revised on Wednesday its so-called '5/20' policy, removing a restriction that domestic carriers have to operate for five years before they can fly abroad. They must, however, still deploy 20 aircraft or 20 per cent of total capacity in India, whichever is higher.
Vistara has a three-class configuration with business, premium economy and economy cabins. This is geared towards the higher-yield international segment, where executives believe they can compete against Gulf carriers such as Emirates, Etihad and Qatar Airways which dominate the market for travel to and from India.
Vistara and AirAsia India, which began operations in January 2015 and June 2014, respectively, will prioritise services to the Gulf and flights to Southeast Asia to connect with their investors Singapore Airlines and AirAsia, added the sources, who declined to be identified as they were not authorised to speak to the press.
Singapore Airlines has a 49 per cent stake in full-service carrier Vistara, while Southeast Asian low-fare pioneer AirAsia owns 49 per cent of budget airline AirAsia India. Tata Group has a 51 per cent stake in Vistara and 49 per cent in AirAsia India.
AirAsia India CEO Amar Abrol said last Wednesday that the airline will increase its fleet from six to 20 aircraft "as soon as possible".
To Read the News in Full 20/06/16 Emirates24|7
The Indian government revised on Wednesday its so-called '5/20' policy, removing a restriction that domestic carriers have to operate for five years before they can fly abroad. They must, however, still deploy 20 aircraft or 20 per cent of total capacity in India, whichever is higher.
Vistara has a three-class configuration with business, premium economy and economy cabins. This is geared towards the higher-yield international segment, where executives believe they can compete against Gulf carriers such as Emirates, Etihad and Qatar Airways which dominate the market for travel to and from India.
Vistara and AirAsia India, which began operations in January 2015 and June 2014, respectively, will prioritise services to the Gulf and flights to Southeast Asia to connect with their investors Singapore Airlines and AirAsia, added the sources, who declined to be identified as they were not authorised to speak to the press.
Singapore Airlines has a 49 per cent stake in full-service carrier Vistara, while Southeast Asian low-fare pioneer AirAsia owns 49 per cent of budget airline AirAsia India. Tata Group has a 51 per cent stake in Vistara and 49 per cent in AirAsia India.
AirAsia India CEO Amar Abrol said last Wednesday that the airline will increase its fleet from six to 20 aircraft "as soon as possible".
To Read the News in Full 20/06/16 Emirates24|7
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