New Delhi: Vistara, which began operations in January, may tweak its strategy by reducing business class seats as demand for these has been less than anticipated, airline CEO Phee Teik Yeoh said in a townhall meeting last month.
"We had anticipated business class demand will pick up with better business sentiment. Alas, 20% growth in traffic is mainly in back end. On the contrary, business class demand actually registered year-on-year decline, both in numbers and fare levels," he said in comments that were later circulated to staff in an email, which ET has seen.
"Therefore, considering market dynamics of demand and supply, we are now looking at smaller business class configuration." Vistara will, however, persist with premium economy seats, which makes it distinct from other carriers. "Our path to success by focusing on a differentiated full-service airline offering remains on track," he said. "We must not abandon our PEY (premium economy) strategy.
05/12/15 Mihir Mishra/Economic Times
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"We had anticipated business class demand will pick up with better business sentiment. Alas, 20% growth in traffic is mainly in back end. On the contrary, business class demand actually registered year-on-year decline, both in numbers and fare levels," he said in comments that were later circulated to staff in an email, which ET has seen.
"Therefore, considering market dynamics of demand and supply, we are now looking at smaller business class configuration." Vistara will, however, persist with premium economy seats, which makes it distinct from other carriers. "Our path to success by focusing on a differentiated full-service airline offering remains on track," he said. "We must not abandon our PEY (premium economy) strategy.
05/12/15 Mihir Mishra/Economic Times
