Jet-Set Ready: Vistara, a new airline, is simple yet luxurious

New Delhi: One would barely expect the textile-pushing Abraham and Thakore label to be associated with “luxury” in fashion. But for the discerning customer, for whom the ultimate luxury is the fineness of fabric and the ease of a t-shirt, Abraham and Thakore has an answer. This discerning customer is now a much-talked about and awaited alliance between the Tata Group and Singapore Airlines, called Vistara. The new full-service airline will be launched in October this year.

With Tata-SIA's Vistara, AirAsia set to fly, airlines eye losses as rivalry rises

Sensing stiff competition from Vistara, a full service offering by Tata Sons and Singapore Airlines, Air Asia India and four-five new airlines which could start operations from the next financial year, incumbent airlines are gearing up to meet the new challenges that could potentially widen their losses.
Naresh Goyal, chairman of Jet Airways, recently announced that his airline will close down its no frills service, Jet Konnect, to focus on a single brand full service carrier strategy to bring the airline back into profitability by the financial year 2017.
“Jet Airway’s economy offering will be defined and will be competitive with that of the other domestic carriers and low-cost carriers”, said James Hogan, chief executive officer of Etihad Airways and a member of Jet Airway’s board of directors, at a recent event in Mumbai.

Vistara offers a ray of hope to full-service carriers

New Delhi: Most experts in the aviation business have written off full-service carriers.Over the last several years, low-cost carriers have steadily increased their market share to 70 per cent. The full-service carriers have done everything they can to hold on to their business - which includes dropping their fares to the level of the low-cost carriers and booking losses - but that hasn't stemmed the tide. But two developments last week suggest that the full-service model may still have life left in it.

First, Vistara, the airline floated by Tata Sons and Singapore International Airlines, announced that its service, to be launched in October, will be a premium one. It will offer personalised service in its business as well as economy class - something not yet seen in India. Phee Teik Yeoh, the CEO of the airline, said the "basification" of travel in India has led to passengers losing their individuality, and Vistara will change the rules of the game.

Even before take-off, rough weather looms for Vistara

Vistara, the full-service airline jointly promoted by Tata group and Singapore Airlines, is expected to start operations in a month amid much skepticism over how another carrier -- and not a low-cost one at that -- will survive or thrive in a market that has been extremely brutal for its participants. India’s aviation industry has been a picture of gloom over the last 10 years as high fuel and operational costs, combined with players willing to lose money instead of dropping out, has led to serious wealth destruction for promoters. In such an environment, Vistara has said it aims to be a full-service “luxury” airline, making analysts wonder there will be enough takers for such a carrier.

Vistara Slots Itself As 'Luxury' Airline

India’s newest airline, a joint venture between India’s Tata Sons conglomerate and Singapore Airlines, will be a full-service luxury carrier named Vistara. The name is derived from the ancient Indian language of Sanskrit and means ‘vast expanse’, connecting with the airline’s domain of flying the limitless skies. Vistara is scheduled to take off in October 2014.
The Delhi-based Vistara unveiled is brand logo, an eight-pointed star, as well as its cabin crew’s uniforms. On its maiden flight, the airline will fly an Airbus 320 and expand its fleet to 20 Airbus aircraft by its fifth year, the airline said in an official statement.
The biggest surprise is Vistara’s positioning as a ‘luxury’ carrier, at a time when Indian airlines are cutting costs and offering no-frills flights. The airline aims to “transform the air traveler’s experience” with an obsession for quality in every aspect of customer engagement, and “will treat travelers as unique individuals and delight them with intuitive thoughtfulness,” the company said in its note.
At the other end of the spectrum, Tata’s joint venture with Malaysia’s low-cost
AirAsia called AirAsia India is disrupting the market with its cheap fares.
Read news in full 13/08/14 Saritha Rai/Forbes

Vistara’s plan is flying

Mumbai: The much-expected announcement of the inauguration of the Tata-Singapore Airlines venture, Vistara, is bound to create a major churn in the Indian aviation which has just seen the arrival of another new airline, Air Asia.
Vistara will take a long time to make an impact on the foreign travel market because of the Jet Airway-Etihad tie up and Air India joining the powerful Star Alliance. Between these two, almost the entire foreign travel from India has almost been sewn up.
So Vistara will have to first make its mark in the domestic market. In this case, the timing may be right because the new airline can bite into the domestic market where Jet Airways is facing turbulent times and is planning to cut out two of its low-cost brands,Jet Konnect and Jet Liteand become a one brand, one pricing, one strategy airline.

Air India, Jet Airways, Tata-SIA Vistara gear up for battle in low-fare focused India

A decade after low-cost carriers led India's air travel boom, full-service airlines are gearing up for a battle for premium passengers that only the deep-pocketed are likely to win.
Flag carrier Air India, which has only offered premium travel, will face more competition from second-largest airline Jet Airways, which on Monday said it would ditch its budget unit and focus on the full-service market amid mounting losses.
The carriers are also bracing for Vistara, a venture between Singapore Airlines Ltd and conglomerate Tata Sons Ltd which will start flying in October.
The competition in the full-service sector is heating up with no guarantees there will be enough passengers willing to pay higher prices to sustain three carriers in a market where low-fares dominate and where airlines struggle to make a profit.

Hot meals not enough: Vistara needs to hammer down costs to LCC levels

New Delhi: Vistara, the Tata-Singapore Airlines joint venture airline, is promising a personalised, premium flying experience. Last night, Jet Airways said it will scrap its no-frills service and concentrate only on the bells-and-whistles service for domestic travellers.
Air India is already promising the moon, thanks to its induction into prestigious global airline grouping called Star Alliance. The two legacy carriers are loss making and debt laden - how will they make ends meet in a market dominated by low cost carriers (LCCs) if they price themselves at a premium?

Tata-SIA readies for takeoff, 6 more in line

New Delhi: The rising losses in India’s aviation sector don’t seem to deter new players. After Air Asia launched operations on June 12, Tata-SIA announced it would start flying the Indian skies in October.
The story so far hasn’t been something to write home about: Rs 50,000 crore of accumulated losses, R80,000 crore of debt, rising fuel costs driven up by a depreciating currency and fare wars all the year round. That’s despite a fairly robust 13% compounded growth in passenger volumes between 2003 and 2013.
Nevertheless, the Tata-SIA airline — Vistara, a full-service airline, announced it would begin operations in October, lured by the “immense potential” of the Indian market.

Vistara may link its flyers to SIA’s global network

New Delhi: Passengers flying Vistara, the JV airline between the Tata group and Singapore International Airlines, can expect international connectivity with SIA's network to fly out of India. On a question on integrating connectivity with SIA's network, Vistara CEO Phee Teik Yeoh said the airline would work towards it.

"I was talking about partnerships and Tatas and Singapore are natural partners. And we are working towards this goal," Yeoh told ET in an interview.

Vistara: Tata-SIA JV airline brand name unveiled; to start operations from October

NEW DELHI: Tata-SIA Airlines on Monday announced that its proposed airline will be called Vistara. Vistara is derived from the Sanskrit word, which means limitless expanse "and draws inspiration from the brand's domain - the limitless sky".

The airline by the Tata Group and Singapore International Airlines is targeting an October Launch. The commencement of operations is subject to the Directorate General of Civil Aviation's (DGCA) approval, which is examining the airline's application ..

DGCA prods Tata-SIA to avoid licence delay

New Delhi: Call it the Narendra Modi impact. Government departments, which are often blamed for making business houses wait endlessly for clearances, are now chasing them to complete the paper work and let projects take off.

The directorate general of civil aviation (DGCA) has asked the upcoming Tata-Singapore Airlines JV carrier to ensure that its operational staff is present at all regulatory meetings to avoid delay in launching operation. DGCA deputy director Ved Prakash wrote a letter to Tata-SIA CEO Phee Teik Yeoh last week after an internal report said that the upcoming airline's operational team did not come for some meetings.

Flying permit process progressing well: Tata-SIA

Jamshedpur: Tata-SIA Airlines Ltd today said it hoped to launch flights by September-October this year as it expressed "satisfaction" over the progress made in getting the flying licence from aviation regulator DGCA.
"The AOP (Air Operator's Permit or flying licence) exercise is progressing well and we are expecting to launch the full service airlines' domestic service in September-October," S Varadarajan, chief human resource officer and chief of corporate affairs of the airline, said in Jamshedpur.
Varadarajan, who was in the steel city to participate in the HR Conclave 2014 organised by CII Jamshedpur, said Tata-SIA has shared all relevant issues, including the route network plan of the company with the Director General of Civil Aviation (DGCA), and was awaiting the AOP.
The company would procure four to five aircraft by end of March next year and enhance the procurement to 20 in next few years, he said.

Tata-SIA hopes to launch flights by September-October

Jamshedpur: Tata-SIA Airlines Ltd on Saturday said it hoped to launch flights by September-October this year as it expressed "satisfaction" over the progress made in getting the flying licence from aviation regulator DGCA.

"The AOP (Air Operator's Permit or flying licence) exercise is progressing well and we are expecting to launch the full service airlines' domestic service in September- October," S Varadarajan, chief human resource officer and chief of corporate affairs of the airline, said.

Tata-SIA gets ready for proving passenger flights in September

New Delhi: Tata-SIA Airlines has told the aviation regulator that it would be ready to conduct a demonstration in September to prove that it can operate passenger flights, an official at the Directorate General of Civil Aviation (DGCA) said.

Its plan to carry out the proving flight in mid- or end-September means the joint venture between the Tata Group and Singapore Airlines would miss its initial target to launch flight operations on September 1.

Tata-SIA representatives conveyed the plan on the proving flight to the DGCA on Monday. "They have told us that the proving flight can be conducted either in middle or end-September and they are expecting their first aircraft in the first week of September," said the DGCA official. An airline spokesperson confirmed the development.

Tata-SIA eyes October launch with 2-3 planes

New Delhi: It will be a big bang Diwali for desi flyers this year. The Tata Sons-Singapore Airlines (SIA) JV full service airline is aiming for an October launch to catch the festive rush. While hiring is on in full swing, the brand name is going to be announced in a few weeks.

The JV's original plan was to start operations from September 1, a date that has now got pushed back slightly. The launch is likely to be much before Diwali (October 23) as the festive rush begins weeks in advance.

The JV expects its first plane, an Airbus A-320, in September and plans to start operations a month later by when it would have two to three planes. It is in talks with GMR-run IGI Airport (IGIA) as Delhi is going to be its hub. "By the end of the fourth year, we will have 20 aircraft," said an official.
However, the fleet acquisition plans may accelerate if the government drops the current rule that an Indian carrier must have flown for five years and have a fleet of at least 20 planes to fly abroad. "We will consider flying overseas earlier if this rule goes," said the official.

Tata-Singapore Airlines set to fly with new brand name

New Delhi: Tata Sons and Singapore Airlines, which have partnered to launch a full-service airline in India by October, are going to unveil a new brand identity for their proposed carrier next month. The new name would not have the Tata or the SIA name, confirmed a spokesperson.

The new identity is in line with Singapore Airlines’ strategy. It has preferred to give new brand names to the two other carriers it controls — SilkAir for regional routes and Scoot for its low-cost alternative. It also has an equity stake in Tiger Airways, another low-cost carrier.

The Tata Group also has independent brands — such as Westside for apparel retail, Titan for watches and Tanishq for jewellery. Group firms which use the Tata name pay annual royalty of 0.25 per cent of their respective revenues to Tata Sons, the holding company.

Tatas’ airlines to suffer as lobby against relaxing 5/20 rule intensifies

Pressure from different airline lobbies is pulling this government in opposite directions over the 5/20 rule for domestic airlines. A powerful lobby of incumbent airlines wants the rule to stay while another comprising new entrants wants it to be scrapped. Caught in the middle of a tug of war, the Ministry of Civil Aviation has wisely decided to hold more discussions over the matter. If this rule is eased, immediate beneficiaries will be the two Tata airlines - AirAsia India and Tata-Singapore Airlines.

So even though officials in the ministry agree that there is little reason to continue with the 5/20 rule, scrapping it still does not figure in the Ministry's list of top priorities. In fact, though 5/20 and its fate are being discussed at various levels, this matter does not form a part of the 100-day agenda of the Ministry of Civil Aviation.

Tata-Singapore Airlines moves a step closer to taking off

Mumbai: Tata-SIA Airlines has moved a step closer to taking to the skies with the Director General of Civil Aviation (DGCA) saying that there is no reason why the airline’s application for an Air Operator Permit (AOP) should not be considered.

In doing so, the aviation regulator has rejected the objections raised by domestic carriers and other entities, which are likely to be affected by Tata-SIA’s foray into the domestic aviation space.

Disposing the six objections received from the public, the DGCA said that Tata-SIA is registered in India, with two-thirds of its directors being citizens of India. Moreover, substantial ownership and effective control of the joint venture is vested in the hands of Indian nationals, satisfying all conditions for the grant of an AOP, DGCA chief Prabhat Kumar said.

'Tata Sons not desi enough to fly JV'

New Delhi: There may have been numerous attempts by vested interests to prevent Tata Sons from launching JV airlines with both AirAsia and Singapore Airlines (SIA), but this one sure takes the cake. Now permission to the JV with SIA is being sought to be denied on the grounds that Tata Sons is not desi enough to qualify as the Indian partner with 51% stake, as required by the FDI rules for startup airlines being formed along with foreign carriers!

Also, the directorate general of civil aviation (DGCA) — which had recently sought objections or comments from public over the proposed Tata-SIA JV — has been asked to deny permission as Tata Sons chief Cyrus Mistry is not an Indian national.