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Tuesday, January 13, 2015

Competitive Strategies for Vistara Domestic Flight

Vistara is the third full-service carrier of the country, operating under the joint venture between the corporates Tata Sons and Singapore Airlines. This newest airline recently started operations in the Indian skies. Delhi, Ahmedabad and Mumbai are among the first few cities to be served by this carrier. These are among the most popular routes of the country; hence it is facing direct competition from other full-fledged service providers as well as low-cost operators. The carrier is adding distinctive features to attract fliers, who already use services of SpiceJet, IndiGo and other airlines. Vistara domestic flight booking includes Premium Economy seating, which is an entirely new concept in the Indian aviation market.


In addition to this, the carrier is operating on a cost-effective model with a lean structure. Currently, there are around 400 people working with the company, including crew members as well as management. The Chief Executive Officer (CEO) of the company said that the key factor for this airline will be the low cost in this competitive environment. In addition to this, he also said that unlike its competitors, the company does not have to manage debt or pay huge amounts of interest. This gives Vistara an edge over others as the entire revenue can be used for growth and expansion. Apart from Delhi and Ahmedabad Mumbai flight, this airline is planning to add a number of other small cities to its network route.

This service provider owns three Airbus 320s, and delivery of 17 more are due in the coming years. Currently, there are four air hostesses and five cabin crew per flight for training purposes, but it will soon be reduced to one and four, respectively. As per reports, new routes will be added only after the 16th of February because of the fog. These new destinations include Patna, Goa, Bangalore, Chennai and many others. As per officials, the objective of the airline is to operate over 80 daily flights to connect various cities of the country. It may also start global operations if the aviation authorities change the 5/20 rule. This states that carriers have to operate for at least five years in the domestic market and own 20 models before commencing international operations.

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