Tuesday, January 10, 2017

Vistara goes all out to cut costs, enhance revenue

Almost three decades ago, an American airlines saved $40,000 annually by removing just one olive from each salad plate.
Giving the same attention to cost reduction, Vistara, the full service JV airline of Tata-Singapore Airlines, will now increasingly source catering for passengers from the city it is flying out of. The logic: Taking catering trays, say on a Delhi-Kochi-Delhi flight, for the return flight from Delhi adds to the weight of the plane on the Delhi-Kochi sector and increases fuel burn.
"It is not just about savings. When we uplift food from other destinations, our passengers will get to savour the local flavours. We are now uplifting catering from Kochi, Mumbai, Kolkata and Bengaluru. We will do so in whichever city we can uplift catering from without compromising on our high standards of passenger service," Vistara CEO Phee Teik Yeoh told TOI, just ahead of the airline turning two.
Vistara, which is yet to break even, is looking at several areas of cost reduction and revenue augmentation. However, Phee Teik emphasies all this will be done without compromising the onboard passenger service which the airline prides itself on.
"We are open to course correction and did that in the first year itself by deciding to alter the number of seats in business, premium economy and economy cabins of our planes. In many of our cities we fly to, the check-in process was outsourced. Now to reduce expense on that front, we have made that an in-house function in seven of the 18 cities we currently fly to," he said.
09/01/17 Saurabh Sinha/The Times Of India