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Boeing778X
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Vistara: What's In Store?

Tue Jul 11, 2017 4:40 pm

Vistara has appointed a new CEO, effective October.

http://m.atwonline.com/people/new-ceo-a ... -s-vistara

It's also stated that the company is still very much interested in International flying. Last month at Paris, Vistara was rumored to be considering the 777X as the vehicle for that growth, which obviously never came to frutition, but it seems the company is still interested in growth.

As a fairly young company, its ambitions are high, backed up by SQ. What's to be expected?
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anshabhi
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Re: Vistara: What's In Store?

Tue Jul 11, 2017 4:52 pm

sooner or later, they are going to enter the longhaul business. They are also eyeing AI's intl business, like IndiGo, for similar reasons.
 
2Holer4Longhaul
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Re: Vistara: What's In Store?

Tue Jul 11, 2017 4:57 pm

I believe Vistara, driven by the ambitions of SIA and Tata, will grow. They may get a chunk of AI, or not, but they will try to open flights to Europe, East Asia, and maybe America.
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tigerair737
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Re: Vistara: What's In Store?

Tue Jul 11, 2017 10:00 pm

Doesn't Vistara also have to contend with the five year rule with starting international flights out of India? If so, there is still another 2 1/2 years before they can start international ops. Besides, the 777X (to me anyway) seems too much aircraft for a relatively small, young airline. Some end of line A330ceo's would be enough for them to start flights into E Asia, the Middle East and maybe Australia. If all goes well, then order A350s or 777Xs and start Europe and N. America ops.
 
atal17
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 12:46 am

^^ That's incorrect - the 5 year rule has been dropped. They now need 20 active aircraft only to commence international expansion.
 
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RL777
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 12:51 am

As much as I'd like to see a 777X order, I think Vistara should tread carefully, jumping into the long haul market with any business model is difficult especially if the regional business isn't properly developed.
 
chiraagnt
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 12:54 am

Vistara is an interesting case of the SIA group finding new segments of growth away from its main SIN base. The new CEO, Leslie Thng, is the ex CEO of Silkair and has extensive knowledge of international narrow body flight operations including Silkair's breakneck expansion as SQ's regional feeder.

Similarly, once Vistara hits the 20 aircraft mark by next year, expect them to use their narrowbody aircraft to enter the GCC and ASEAN markets (especially SIN and DXB) before moving into Europe and USA ops which seems to be lucrative as well if done correctly. Vistara won't be a feeder for SIA group but if expansion is done slowly and steadily with slots and aircraft from the SIA group at their disposal as well, profitable expansion over the next 5 years to become India's truly premier FSC can be achieved rather than going the path of Kingfisher which tried to expand way too fast through ordering A380s and thinking of ambitious routes like BLR-SFO which led to their demise, in addition to needless spending and poor route planning. Just my 2 cents!
 
JOYA380B747
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 8:45 am

Though counterproductive for SQ, I really think Vistara should especially look east & south east for furthering their medium-long haul network. Japan, South Korea, Oceania, Philippines, etc.
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sq421
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 12:58 pm

JOYA380B747 wrote:
Though counterproductive for SQ, I really think Vistara should especially look east & south east for furthering their medium-long haul network. Japan, South Korea, Oceania, Philippines, etc.


& I hope they do so ex-BOM and not DEL or any airport. Though I know DEL is their main hub in India.

If they start flying westward, that would be the best thing to happen to Indian aviation since ME3. Considering how cheap and customer unfriendly 9W has become with it's frequent flyer program and check in rules. UK can give them a run for EU routes.
 
blrsea
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 1:11 pm

Vistara hasn't had a profitable quarter yet. They lost around $62 million in the previous year. They are yet to expand properly domestically, still flying the trunk routes only, and having to deal with LCCs like Indigo, SpiceJet and Go Air. Trying to be full service carrier with premium economy & business class, and offering free food even in Y, while selling economy tickets at prices comparable to LCCs is a losing proposition. In the domestic Indian market where the flight times vary between 1-3 hours, is PE really making money? There were earlier reports of their PE not finding many takers.

They will have to operate at least 20 planes in domestic sector, mostly running under loss, and look for international expansion. SQ needs to pump in hundreds of million before they start making any money. Have to wait and watch.
 
vadodara
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 1:17 pm

blrsea wrote:
Vistara hasn't had a profitable quarter yet. They lost around $62 million in the previous year.


Running a 3-class service on an essentially short-haul market is a loosing proposition. As you pointed out, on one hand they are competing with nimble 1-class competitors, on the other with a state owned behemoth for whom making profit is not part of the program.
 
anshabhi
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 2:09 pm

vadodara wrote:
blrsea wrote:
Vistara hasn't had a profitable quarter yet. They lost around $62 million in the previous year.


Running a 3-class service on an essentially short-haul market is a loosing proposition. As you pointed out, on one hand they are competing with nimble 1-class competitors, on the other with a state owned behemoth for whom making profit is not part of the program.


PE was earlier not working because most Indian companies don't recognize it as a class of travel,and thus it wasn't an option for official travelers who are reimbursed by thier co.
Vistara has worked a lot on fixing this, and many companies do recognize it now.
PE is Aimed at mid-level executives.
If you compare, Vistara's PE is not really more expensive than economy of AI, 5 years earlier.
 
VTORD
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 3:20 pm

anshabhi wrote:

PE was earlier not working because most Indian companies don't recognize it as a class of travel,and thus it wasn't an option for official travelers who are reimbursed by thier co.
Vistara has worked a lot on fixing this, and many companies do recognize it now.

Why do corporates have to recognize PE as a class of travel? Just put it down to "air ticket" and modify the travel policy guidelines. My company's expense system simply recognizes a cost for "airline ticket". If I buy a higher class than Y (I travel only domestic and have been required to do it only twice), I just add a comment on my expense report so that it doesn't get rejected.

anshabhi wrote:
If you compare, Vistara's PE is not really more expensive than economy of AI, 5 years earlier.

Didn't Vistara re-organize their seat configuration to reduce PE and J sometime earlier? I think that is a more feasible reason for uptick in pax numbers than a line item category on a corporate expense report.
 
anshabhi
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 3:52 pm

VTORD wrote:
anshabhi wrote:

PE was earlier not working because most Indian companies don't recognize it as a class of travel,and thus it wasn't an option for official travelers who are reimbursed by thier co.
Vistara has worked a lot on fixing this, and many companies do recognize it now.

Why do corporates have to recognize PE as a class of travel? Just put it down to "air ticket" and modify the travel policy guidelines. My company's expense system simply recognizes a cost for "airline ticket". If I buy a higher class than Y (I travel only domestic and have been required to do it only twice), I just add a comment on my expense report so that it doesn't get rejected.

anshabhi wrote:
If you compare, Vistara's PE is not really more expensive than economy of AI, 5 years earlier.

Didn't Vistara re-organize their seat configuration to reduce PE and J sometime earlier? I think that is a more feasible reason for uptick in pax numbers than a line item category on a corporate expense report.


Your company is surely an exception, and you should be happy about it! But most companies have quite clearly written which class are their employees required to fly, and there's no limit on fares. I know of various public sector banks which have this policy, and some IT companies like Infosys.

Yeah, they did reduce PE and J seats, but that was to be. India is still not a that premium heavy market..
 
vadodara
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Re: Vistara: What's In Store?

Wed Jul 12, 2017 8:39 pm

Regardless of what the travel policies are, in reality, the premium travel is really a very small market.

Easiest comparison is JFK-LAX/SFO. There is quiet a bit of jostling here with multiple models tried out. Yet, the only model that could be scaled-up was the JetBlue model out of Boston and to a certain extent Ft Lauderdale. Other than that, there is simply no market that is certainly ready to pay a premium.

Most domestic routes in India are in 2-3 hr range. It would be very hard to expect someone to make extra revenue by offering premium.
 
VTORD
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Re: Vistara: What's In Store?

Thu Jul 13, 2017 2:08 pm

vadodara wrote:
Regardless of what the travel policies are, in reality, the premium travel is really a very small market.

Easiest comparison is JFK-LAX/SFO. There is quiet a bit of jostling here with multiple models tried out. Yet, the only model that could be scaled-up was the JetBlue model out of Boston and to a certain extent Ft Lauderdale. Other than that, there is simply no market that is certainly ready to pay a premium.

Most domestic routes in India are in 2-3 hr range. It would be very hard to expect someone to make extra revenue by offering premium.


Yes you are correct. That's why I said that "not recognizing PE as a travel class" on a corporate expense report is hardly likely to be the reason for not filling the PE seats. It has to be market / preference driven.

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