Saturday, December 22, 2018

Pie in the sky: Vistara’s overseas plans in trouble as Air Asia probe drags on

Vistara, the joint venture carrier between the Tatas and Singapore Airlines, may have to wait longer to fly international as the civil aviation ministry wants to wait for the Central Bureau of Investigation to complete its inquiry into allegations that the overseas flying norms were relaxed due to lobbying efforts of AirAsia. The Tata group holds stake in AirAsia also and the CBI is probing allegations that the company illegally paid government officials and lobbyists to get overseas flying norms relaxed.

Though overseas flying norms were relaxed by the current government in June 2016, the move began during the earlier UPA rule.

Earlier norms allowed carriers to fly international only after domestic flying experience of five years and after attaining a fleet of 20 aircraft. However, under the new policy, an airline just needs to have 20 aircraft to be eligible to fly overseas. The 20 aircraft have to be deployed for domestic operations and the 21st onwards can be used for international operations.

Vistara, which began operations in January, 2015 got its 20th aircraft in April and currently has 22 aircraft in its fleet so it can begin services to two overseas destinations.
22/12/18 Arun Nayal/Financial Express

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