Thursday, September 14, 2017

Vistara's net loss widens to Rs 518 cr in FY17

 Mumbai: Vistara's net loss widened to Rs 518 crore in FY 2017 due to rising competition and costs.
The airline's revenue doubled to Rs 1,390 crore on an annual basis due to increase in capacity and improved loads but loss grew over 29% indicating heightened cost pressure. Net loss in FY16 stood at Rs 400 crore. With losses in successive years, the airline's net worth is negative by Rs 1,000 crore. The figures are disclosed in Tata Sons annual report of last financial year.
Vistara, which is a joint venture of Tata Sons and Singapore Airlines, started operations in January 2015. The airline has widened its footprint after a slow start. It increased its fleet from 9-13 A320 planes and added seven destinations in FY17. Its flights per week rose to 500 by March-end, a growth of 66% on a year-on-year basis.
At present, it operates 16 planes and flies to 21 destinations.
Tweaks in aircraft configuration and network too helped the airline grow its revenue and loads. Vistara's passenger load factor has risen from 65% in calendar year 2015 to 75% in 2016 and has touched 85% in first seven months of 2017. Increase in corporate business, feeds from partner international airlines and growth in international sales has also boosted  revenue growth.
14/09/17 Aneesh Phadnis & Dev Chatterjee/Business Standard