New Options for Booking Cheapest Domestic Flights

Apart from being a highly lucrative market, Indian Aviation industry is equally competitive. As per reports, commercial flights in India offer their services at comparatively cheaper price in comparison to European, American and Asian counterparts, making SpiceJet, IndiGo and GoAir domestic flights the cheapest. Prices were dropped down even further as soon as Malaysia-based AirAsia commenced its operations in the country. Similarly, another vital change in pricing can be seen in the following months with the arrival of Tata and Singapore Airlines (SIA) joint venture – Vistara – in the market. As per reports, it has received the air operator permit (AOP) from the Directorate General of Civil Aviation (DGCA).

A few days back, Vistara successfully carried out flight tests in the presence of DGCA officials. It is mandatory test – basically a part of the safety audit – for all carriers before they are issued AOP. The company scheduled its launch in the last quarter of 2014, but completion of other legal obligations took more time than expected, leading to delay. Now, it is expected to start operations from first quarter of 2015, and this flying license paves its way forward. Owned by two conglomerates in their own field – Tata and SIA – this carrier is expected to offer cheapest domestic flights without compromising with the quality of services. The company said that they will soon make announcements regarding the sale of tickets on different routes.

The airline said that it will soon make announcements on the start of sales, routes and schedules. It currently has two Airbus 320s, soon to be joined by 18 more models, including the latest Neos. By the end of March, the carrier will receive the delivery of five other aircraft. This start-up is the third full-service airline of the country after Air India and Jet Airways. It is planning to operate over 80 flights in the beginning, and gradually increase the number up to 400 in the coming three-four years. These operations are expected to be launched on the trunk route, including destinations like Delhi, Mumbai, Hyderabad, Jammu, Srinagar, Patna and Ahmedabad. After DGCA reaches to a decision regarding the 5/20 rule, the airline will commence its international operations also.

Opening of Domestic Flight Booking with Vistara may be Delayed

The joint venture of Tata and Singapore Airlines (SIA) – Vistara – is a full-fledged carrier based in India. This airline scheduled commencement of its operations by the end of the year 2014, but as per recent reports, it has been delayed due to flying permit issues. The airline applied for the permit back in April, 2014 and planned a launch by September. However, the Directorate General of Civil Aviation is thoroughly checking every aspect, and the carrier is in the last phase of getting Air Operators Permit (AOP). The carrier will operate most of its flights from the primary hub at Delhi airport, and domestic flight booking options include Bangalore, Goa, Jammu, Hyderabad, Patna and Chandigarh for now. It will add new routes with the passage of time, and has also booked some slots at Terminal 3, often booked for international operations.

A Vistara spokesperson said that the company is working with regulators to speed up the remaining process, and as soon as it gets the certificate, bookings will be open for fliers. Tata – one of the conglomerates of India – owns 51 per cent shares in the venture and rest 49 per cent are owned by SIA. As per speculations, it aims at providing services offered by full-fledged airlines at prices that can compete with low-cost carriers (LCCs). So, travellers booking Bangalore to Patna or Delhi to Srinagar flights can now enjoy top-notch services at economical fares. It is speculated that the onset of this airline will affect LCCs like SpiceJet, GoAir and IndiGo as well as Jet Airways and Air India.

The airline planned to take 20 Airbus 320s, including the latest offering (Neos) from the manufacturer. Two aircraft have already been delivered and the third is in the line, but delay in the grant of AOP has slowed down the process. It is planning to operate around 80 flights in the first year, and raise the number to 300 in the following three-four years. These flights will include international destinations also in addition to Indian Tier II and III cities. This is expected to leave a great impact on the industry and existing operators of the country.

Impact of New Rules on Air Ticket Fare

Technologies used in the aviation industry, including ingeniously designed engines, navigation tools and in-flight amenities have been replaced with new ones. Earlier, most of the metro cities were served by various airlines, but now flights to Bhopal, Varanasi, Lucknow and many other II as well as III tier cities can be availed as well. In addition to this, management strategies have also been revised to meet the dynamic market challenges and this is the reason that some changes are needed in aviation rules also. Although, a number of new regulations have been introduced, but old ones can also be seen revised in the coming months.

In response to issues regarding licences to Malaysia-based AirAsia and soon to be launched Vistara for global operation, the Federation of Indian Airlines (FIA) commented on the 5/20 rule. As per this rule, every airline set up in India needs to have a fleet size of at least 20 aircraft and must complete 5 years of operation, then only licence for international operation will be given to it. However, FIA, formed back in 2006 by Air India, SpiceJet, GoAir, IndiGo and Jet Airways, resisted this policy and said that it needs to be changed. A few months back, this law was asked to be waived off, but the Directorate General of Civil Aviation (DGCA) kept it intact.

However, one of the DGCA ministers said that no other country follows this rule; hence, it can be removed from the list pre-requisite conditions. The relevance of this law has been lost because of increased safety standards and application of the latest technologies as well as attempt of global operators to cater niche markets of various countries. The Associate Chambers of Commerce (ASSOCHAM) also released a paper mentioning that this policy of government has no logic in the current market scenario. This policy was drawn almost a decade back, and many new carriers have entered in the industry since then, as well as the country has undergone significant changes regarding air travel demands, since then. Today, air ticket fare is almost half of what it used to be 10 years back.