TATA-SIA JV: A New Airline On The Cards
TATA-SIA JV: A New Airline On The Cards
TATA Sons has just joined hands with Singapore Airlines to form a joint venture resulting in a brand new airline which is indicated by media reports as being named "Vistara". The airline is expected to launch operations within a couple of months with the first aircraft becoming operational by September. "We are in the last lap of the process of securing the Air Operator Permit (AOP of flying licence). There are a series of approvals which we have to get to the satisfaction of DGCA,"Phee Teik Yeoh, the CEO of the start-up full-service has been quoted by media reports as saying. He has also added that "we expect to get the first aircraft some time in September and by this calendar year, we would have five aircraft in our fleet".
The Delhi based airline has decided to lease 20 Airbus A-320s which comprise 7 A-320 Neo series planes that are equipped with the latest technology currently existing. The airline is aiming for a 20-aircraft fleet in a period of 5 years. Yeoh spoke about the airline's brand name as well as its logo and livery at the launch of the airlines. TAT SIA Airlines chairman Prasad Menon and board directors Swee Wah Mak as well as Mukund Rajan were also present.
When questioned about the route network of the new airline, the CEO has indicated the company is close to finalising the route network. The aim is to cover cities which have a clear demand for a full-service airline. Sources also told media agencies that the plan would commence services in 5 cities and reach up to 11 within a year of its launch. Around 87 weekly flights are planned . These link Delhi with cities such as Mumbai, Bangalore, Hyderabad, Goa, Srinagar, Patna and Chandigarh. The aim will be to get the new airline "quickly off the ground" according to Yeoh. He has also been quoted by media agencies as saying "full-service is not just serving food in-flight, but there will be a clear strategy based on customer experience and expectations."
The firm is a 51:49 JV between TATA Sons and Singapore Airlines (SIA) with the latter investing $49 million for the airline and TATA group providing the remaining portion of the $100 million investment. TATA SIA Chairman Menon indicated TATA SIA JV airline will be "a significant player" by "redefining the way we travel in India. I can confidently say that Tata's and SIA's legendary hospitality standards and service excellence will make 'Vistara' a natural choice for passengers". SIA has two other carriers- SILK AIR (short haul) and SCOOT (long haul and low cost) . It is also invested in Tiger Airways which is a low cost carrier. The airline will operate from Delhi due to capacity constraints at the Mumbai airport. The airline may also operate international flights from India based on government approvals.
Media reports indicate that the new JV airline will have business and economy classes as well as an additional offering between the two according to sources. Pioneers of India's first civilian airline, the TATA group is now taking the aviation industry to new heights with this latest airline venture.
