New Delhi based Vistara is turning its focus towards international routes as the airline believes its domestic services are well-covered, with 31 destinations in India.
“In India we are operating in a quite good way. Now we are looking into international expansion. That’s why we have started with Frankfurt, Paris and London,” Vistara CEO Vinod Thandali Kannan told me recently on the sidelines of IATA’s recent annual general meeting.
The CEO explained in our wide-ranging conversation, that the airline’s first priority is to increase frequencies on existing European routes, as well to open services to Japan and South Korea. “In the Middle East we fly to Dubai and Jeddah, for example,” Kannan said. He did not rule out flights to the U.S. in the long-term future.
However, delivery of its four remaining Boeing 787-9s on order is limiting Vistara’s expansion plan. “We are waiting for when Boeing gives them to us,” Kannan said.
“The 787s are late, and this affects the growth plan quite a bit. We should have received them in 2020, and then in 2021.”
Vistara currently operates 51 aircraft, including two 787-9s. “On the narrowbody side, we operate mostly Airbus A320neos and A321neos. Our last five Boeing 737-800s, formerly Jet Airways aircraft, will leave the fleet in the next 6-12 months,” Kannan said.
By the end of 2023, Vistara plans to operate 70 aircraft, including all of the remaining incoming 787s. “There is no magic number in terms operating a minimum size of fleet. It depends on your business model. But you need scale,” Kannan said.
The A321XLR would offer new opportunities, he said. “When we get A321XLRs, we will be looking beyond the Gulf region, like to Eastern Europe, as well Hong Kong,” the CEO said. “The aircraft will give a lot of options.”
Plans for operations to Moscow have been postponed.
Vistara is a full-service carrier that began operations in 2015. It has 257 daily departures, including 76 from New Delhi, 50 from Mumbai and about 25 from Bangalore.
Kannan said Vistara has not looked to join one of the global alliances. “We have a lot of bilateral agreements where we have codeshares with British Airlines, Japan Airlines, Lufthansa, Singapore Airlines and United Airlines.”
Vistara is 51% owned by the Tata Group and 49% by Singapore Airlines (SIA). They are joint owners and work together to decide how Vistara fits with Air India now that Tata also has invested in the Indian flag carrier.
Asked whether Tata plans to bring Vistara and Air India together, Kannan said they are looking into it, but Singapore Airlines also will have to decide if such a deal would be possible.
“The market in India is growing. Our load factors are in the mid 80% level, a bit lower than before COVID,” he explained. But the Indian market potential is huge.
“Only 5-10% of the Indian population has flown. And people who have flown will fly again,”
Kannan said there is business in India for everyone, but there are a lot of price sensitivities in the domestic market as 80% of it is served by LCCs. “But we also have seen that people don’t mind spending a bit more because we offer more space. We also offer a premium-economy class,” Kannan noted.
The infrastructure for airlines in India remains challenging. Fuel prices have risen, and taxation is quite high, affecting Vistara´s domestic operations, Kannan said. “Some of these costs you can manage with the customers. But we are facing the challenge that our revenues are mostly in Indian rupees, but our costs are in U.S. dollars,” the CEO said. “We are the best airline in India. It was easy getting there, but maintaining that level is a problem. We established a good brand, and we see very good support on European flights.”
Kurt has been writing on the airline industry for more then 25 years. He is a correspondent for ATW (Washington) and Aero International (Hamburg). He appears frequently on Austrian, Swiss and German television and broadcasting channels to discuss issues affecting commercial aviation.
Just read on airliners forum that one of Vistara’s three stored 787s (i.e., VT-TSO) is being prepped for delivery (subject to FAA approval expected later this month) and had flown an internal flight – CHS – CHS (i.e., Charleston – Charleston) – on June 30, 2022. What’s interesting is this aircraft is Line Number “LN 1107”, as opposed to the other two earlier assembled Vistara 787s, which are LN 1049 (VT-TSN) and LN 1027 (VT-TSH). As VT-TSO, came off the assembly line after the other two, presumably, it needs less re-work for FAA certification. With this 1 aircraft, Vistara will be able to start its second India – London Heathrow flight, which has been approved effective, October 30, 2022. To increase frequencies to Paris and Frankfurt, it needs 1 more 787 (when is that expected?), and then for Japan (another one), and yet another one for South Korea. Note that Vistara is expecting 4 787s from Boeing, but other than VT-TSO, which now seems certain to be delivered in 2022, it isn’t clear when the others will be delivered.
While going from India, hope no issues for you,
Make sure from international or domestic airport and get your baggage all well marked on tickets
But return be careful if you enter through delhi or other airports and then transfer you must take your luggage and start all procedures once more…
Vistara seems to be on a lucky streak. In addition to having secured permanent daily slots to London Heathrow (for Winter 2022), which is in addition to their existing daily slots, INDIA the country (and by implication Vistara), had secured a daily slot pair (1 slot daytime, 1 night time) for Tokyo Haneda airport when it released slots in 2020. Haneda slots are just as coveted as London Heathrow’s slots. However, then came COVID. The question is for how long Vistara/India will have, to utilize the Haneda slot, before it is permanently forfeited? Therefore, the delivery of 787s becomes all the more important for Vistara. Three of the 4 787s are already manufactured but presumably need rework, while 1 (to be built directly to FAA specifications) is scheduled to be manufactured/assembled in 2022. Looking forward to a story on how they can successfully not lose the Heathrow (2nd flight) and Haneda slots.
I have fleed recently with vistara to paris and it is the worst airlines have ever seen in 35 years, ground staffs seems all temporary staff without any knowledge and nearly 75% the same menus(minimum)…..
Never ever will get through vistara….
Hey mate, I’ll be flying out of Delhi on the same route as a student. What can I do in case of any mishap happens with Vistara?
While I appreciate the response, I understand that the award of the second pair of daily London Heathrow slots (permanent daily slots in addition to the existing temporary slots) came only after the interview. Furthermore, informal updates on 787 delivery by Boeing to customers like Vistara, occurred only after the interview. While I understand that Vistara is probably awaiting FAA approval, as does everyone else, one would think they could share something general such as whether Boeing has indicated it will get 1,2,3 or 4 787s this year. Note that United and Lufthansa have already indicated they expect 4 And 5 787s, respectively, in 2022. If they know, Vistara also should. My suggestion is to reach out to Vistara.
Of the 4 787s yet to be delivered by Boeing to Vistara, and subject to FAA approval of recommencing 787 delivery, has Boeing guaranteed Vistara at least 1 to be delivered by October 30, 2022 (I.e., Winter 2022 season commencement) when Vistara is eligible to start its second daily flight to London Heathrow airport? If not, Vistara wouldn’t have aircraft to operate that additional flight on that lucrative route. It would be great if this article is updated with this missing piece of information.
The CEO of Vistara cannot confirm this at the time of interview.
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