Vistara bullish on tapping corporates

Vistara bullish on tapping corporates

Vistara bullish on tapping corporates

Vistara — a joint venture between Tata Group and Singapore Airlines — has embarked on a strategy to tap the niche segment of corporate day-trippers.

“We are bullish on the corporate sector, since a lot of its members are expected to wake up, catch an early flight, do business and return back within a day’s time. In order to facilitate the best service for our passengers, we have ensured that they derive a hassle-free experience from the time they check in at the place of departure and to the time they leave the airport at their destination. We have auto check-in systems in place, and have integrated a diversified food menu,” Vistara Chief Executive Officer Phee Teik Yeoh told Deccan Herald.

“Maintaining punctuality is a priority. We have retained an on-time performance of 95-98 per cent in the last four months,” Phee claimed. Vistara’s maiden flights from Bengaluru to Delhi, and Mumbai respectively, will commence on Tuesday, taking its weekly flight network to 237 frequencies, through 10 destinations.

As a first in the country’s domestic airline scene, the company has introduced a premium economy seat configuration in all its aircraft, targeted at corporate passengers. Besides, wireless streaming of audio-video content in the economy class is on the anvil.
“Our A320 aircraft seating is configured as 16 business class, 36 premium economy, and 96 economy class seats. We are a full-service airline, but we price our products akin to a low-cost carrier, through sustainable processes and a lean team. We command a slight premium on our differentiated services,” Phee said.

The fact that the Tatas are one of its parent companies has helped Vistara leverage the corporate customer base well. “We have already partnered with Indian Hotels, followed by Titan. We are also expecting a few companies to integrate our product as part of their corporate travel policies, especially our premium economy offering,” he added.
More planes, more placesVistara currently has six leased A320 aircraft. It will add another three aircraft by the end of this calendar year.

“We will be adding three brand new aircraft beginning from September. We have a commitment for 20 leased aircraft from Bank of China Aviation, enabling us to get nine aircraft by the end of the year, and every year until 2018, we will get three to four aircraft, bringing the total to 20 by 2018. All aircraft are new A320 Sharklets,” Phee said, hinting that the carrier would fly overseas routes as well. He said the company’s funding of $100 million is  adequate. The airline’s load factor has been growing steadily over the last couple of months. It announced a 66 per cent uptick in load factor in April 2015, which was 16 per cent over March.

According to DGCA, India’s scheduled airlines carried 67.73 million passengers in 2014, compared with 61.42 million passengers in 2013. Crisil says that airlines in India are projected to record a collective operating profit of Rs 8,100 crore in fiscal year 2016, which means the civil aviation industry is on a high growth trajectory.
DH News Service

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