Is Vistara Into Serious Losses ?
Vistara Into Serious Losses ?
Vistara is a joint venture (JV) parents—Tata Group and Singapore Airlines (SIA). Fuel prices are at rock bottom, most of the Indian carrier have posted profits recently. However,Vistara is seriously struggling due load factor. Indian aviation is a peculiar market where price has more priority as compared to services. Vistara has best services,however prices are way too high as compared to other carriers.
Vistara has appointed two new non-aviation directors to its board, and tapped its —for an extra INR200 crore ($29 million) in cash.
New Directors in Vistara :
The new directors include experienced Indian corporate hands Som Mittal and Sangeeta Pendurkar; they have played senior roles in the Indian automotive and F&B sectors, respectively.
Speaking on the latest cash injection, a Vistara spokesperson said the carrier is “sufficiently funded to manage operations in the initial phase,” but is likely to review its strategy “as and when required.”
The fledgling carrier, established to give SIA a toehold in the expanding Indian market, carried its millionth passenger in August, but has been reporting load factors of only around 60%. Currently, Tata Group holds 51% and SIA holds 49% ownership.
However, the airline said it is committed to adding three more Airbus A320s to its existing fleet by the end of 2015. This will give it nine aircraft by 2016, with plans to expand to 20 aircraft by 2018.
The carrier is currently hindered by existing Indian JV legislation, which stipulates non-Indian carriers with an Indian base can only fly international routes five years after starting business, and once they have 20 aircraft.
However, Vistara CEO Phee Teik Yeoh indicated in March he would be seeking an exemption or changes to the regulation, saying that “… When the 5/20 rule goes away it’s a new ball game. Then there are lots of opportunities.”
Vistara offers 245 daily services to 11 regional destinations from its base in Gurgaon, Haryana.
You can check the Jobs openings below :
Jobs for Pilots in Vistara Air
Jobs for Cabin Crew in Vistara Air
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