Tuesday, February 04, 2020

Vistara CEO assures that carrier is not changing its business model

In Indian aviation, business flexibility is the order of the day. Case in point: full-service operator Vistara, which offers three classes of service, expects to unlock value by entering smaller markets and discovering a new category of customer with all-economy Airbus A320neo operations.

But having a few all-economy configured aircraft “does not mean a change in business model, as we are not creating [a] sub-brand”, Vistara CEO Leslie Thng stressed to Runway Girl Network.

“We only have one aircraft configured in all-economy class configuration at present. It is deployed on the Delhi-Ranchi and Delhi-Udaipur routes. It is a carefully evaluated decision to have such an aircraft in our fleet considering the market dynamics.”

Service on Vistara’s 180-seat all-economy A320neo is no different than economy service on any of its regular three-class, 158-seat twinjets. “Aircraft configuration is not to be confused with business model … Vistara will be the same award-winning airline, praised for its service delivery and operational efficiency; not having two other cabins on some planes does not change how we think about our customers or treat them,” assured Thng.
This democratization of travel in India is being propelled by other forces, however. Indian operators must adhere to the government’s Route Dispersal Guidelines (RDG), which require that a percentage of capacity be deployed on second and third tier routes. As regional towns and cities grow, these routes (known as Category 2 and Category 3 under RDG) are in fact becoming fewer.
04/02/20 Neelam Mathews/RunwayGirlNetwork

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