Tata airlines Vistara and AirAsia India gear up for international runways

Tata airlines Vistara and AirAsia India gear up for international runways

Vistara to start flying abroad from July, AirAsia India sets year-end target

Around two years after the government made it easier for airlines to fly abroad, two Tata group airlines are preparing to start international operations. While Vistara, Tata group’s full-service carrier, will begin international flights in the second half of this year, its low-cost airline AirAsia India is likely to follow by the end of 2018.

According to the initial plans, both the airlines will try to take advantage of the strong markets of its parents Singapore Airlines and AirAsia Bhd. So, Vistara, a joint venture between the Tatas and Singapore Airlines, will initially start with Singapore and destinations in West Asia, while AirAsia India will feed into hubs such as Kuala Lumpur, where its parent Air Asia Bhd has a strong presence.

The government had relaxed the 5/20 rule, which mandated five years of domestic operations and 20 aircraft for an airline to fly abroad. While the condition of 20 aircraft stayed, the requirement of five years of domestic operations was waived. While it was heavily opposed by incumbents such as IndiGo, SpiceJet, and Jet Airways, Ratan Tata gave a public statement asking for the change.

According to Leslie Thng, chief executive officer (CEO), Vistara, the airline will initially start operations to the short-haul international destinations from Delhi and then scale up to middle-haul destinations within a nine-hour range. After consolidating its market, the airline will plan ultra long-haul destinations like the west coast of the US.

“Initially, we have taken a middle-term view of three years. By June, we will have 22 A320 planes and will start international operations from the second half of this year. Initially, we will look at destinations which are in the four- to five-hour flying range of the A320,” he said.

Thng refused to comment on future destinations but indicated the airline plans to fly into well-established markets rather than virgin routes. According to senior officials in the civil aviation ministry, Vistara has already sought permission to start operations to places such as Abu Dhabi, Dubai and Singapore. Industry sources said the airline was looking at Airbus A330neo through which it would launch destinations in Far East Asia like Tokyo and Seoul. London is another probable destination. “I believe that Vistara will stand out among its competitors in the international market. For unchartered market, we will have to see if that makes financial sense,” Thng said.

Experts said Vistara’s gradual expansion made sense and it would look to increase its presence in long haul markets through partnerships before taking the plunge on its own. “India sees large origin-destination traffic to places like London, Singapore, Hong Kong. Vistara could have a strong presence there once it starts widebody operations,” said Ameya Joshi, founder of aviation blog Network Thoughts.

AirAsia India will try to feed into the extensive international network of AirAsia group, beginning with daily services to Kuala Lumpur and Bangkok from Bengaluru and Kolkata. Some of the routes that the airline has sought permission for are Bengaluru-Kuala Lumpur, Kolkata-Dhaka, Hyderabad-Kuala Lumpur.

“We are looking at end of 2018 or definitely by early 2019. Our group airlines have a meaningful presence in those two cities (Kuala Lumpur and Bangkok), all we need to do is to go and land there,” Amar Abrol, CEO of AirAsia India, said. The airline, which currently has 14 aircraft, plans to add at least eight annually for the next five years.

“The airline has a large network beyond Kuala Lumpur and Bangkok too and would definitely leverage those but availability of bilateral will be critical since existing players will also increase flights this year,” Joshi said.

 

News Source: www.business-standard.com

About author

TnH Global
TnH Global 4067 posts

Our platform is the most comprehensive, current and accurate content destination for tourism that also offers the opportunity to connect and network with quality buyers and sellers.

Name: TnH Global              Email: admin@tnhglobal.com

You might also like

Slider

Top 11 eco-friendly destinations around the Globe

1- Costa Rica World’s pacesetter in ecotourism, Costa Rica has got a substantial percentage of protected areas and is planning to become the first carbon neutral destination by the year

Louvre Hotels Group buys into Sarovar Hotels and becomes one of the largest hotel groups in India

Louvre Hotels Group, 2nd largest hotel group in Europe announces its acquisition of a majority stake in Sarovar Hotels, the largest independent Indian hotel chain in terms of hotels and

Slider

Banks may become strategic investors in Air India; listing on the cards

The Modi government’s plan for Air India envisages better, professional management, and a listing—but not divestment! Air India has so far received Rs23,993 crore of the Rs30,231 crore equity infusion

Slider

Amadeus encourages industry to make accessible travel a reality for all

A new study outlines how greater personalisation, universal standards in the provision of services, more effective communication and increased collaboration between public and private sectors can drive a more accessible

Slider

BLS International launches Spain Visa Application Center in Chennai

For the convenience of the residents of Tamil Nadu we offer to provide quick, economical & hassle free visa services. Plans to open more Spain Visa Application Centers in South

Trending

GoAir puts back into ops one A320 Neo after new engine deliveries

After budget carrier IndiGo, Wadia group-promoted GoAir has also received new engines from Pratt & Whitney for its grounded turbofan-powered Airbus A320Neo planes. The American engine maker’s PW1100 geared turbofan

Latest

AIRASIA GROUP CEO TONY FERNANDES RECEIVES OCI STATUS

AirAsia Berhad Group CEO Tony Fernandes received Overseas Citizenship of India (OCI) status from the Government of India. OCI confers same privileges as a Non-Resident Indian. The statement was issued

Latest

Thai Airways launches Dream Liner

Thai Airways is giving its customers a whole new in-flight experience with cabin enhancements, more seating comfort and almost limitless entertainment options with B787-8 Dreamliner aircraft. Flying on international routes

20 major stations set for revamp, auction will be in January

Indian Railways is readying to auction 20 major stations for redevelopment next month, hoping to attract private investment in creating world class railway stations that will cost an estimated `15,000

MICE

Muslim millennial travel report to be launched at ITB Asia 2017

Mastercard and Crescent Rating to launch new Muslim millennial travel report focusing on the rise of young Muslim travellers at the Halal-In-Travel Summit held as part of ITB Asia 2017 ITB

Slider

AirAsia India looks at IPO, to appoint banker soon

AirAsia India will appoint a banker and look at floating an IPO soon, says promoter Tony Fernandes Loss-making AirAsia India will appoint a banker and look at floating an initial

HR News

Reed Travel Exhibitions appoints new regional director for Middle East

Danielle Curtis takes on the overall responsibility for Arabian Travel Market, IBTM Arabia and all associated regional projects Reed Travel Exhibitions (RTE), organizer of the annual Arabian Travel Market (ATM)

0 Comments

No Comments Yet!

You can be first to comment this post!