Vistara to Cease Operations After November 12: Can Air India Meet the Standards?

 

UV INDIA NEWS: Vistara, which began operations in January 2015 and currently has a fleet of 70 aircraft, will discontinue its services after November 12, 2024. According to the Directorate General of Civil Aviation (DGCA), Vistara holds a 10% market share in the domestic segment and 4.1% in international traffic. Air India has a 14.3% market share domestically and 13.1% in global traffic.

Industry observers are skeptical about whether the merger will benefit consumers. Ameya Joshi, founder of aviation consultancy Network Thoughts, expressed concerns about the timing of the merger post-Diwali and its potential to confuse the market, which typically sees last-minute bookings during festive seasons despite higher fares.

Ajay Prakash, a board member of the Federation of Associations in Indian Tourism and Hospitality, noted that Vistara has built a loyal customer base. He suggested that not all Vistara passengers would automatically switch to Air India, particularly since Air India faces challenges until it refurbishes its older aircraft and introduces new ones.

Rajiv Mehra, president of the Indian Association of Tour Operators, commented that while Air India could improve in the long term, it remains uncertain whether it can meet the premium service standards that Vistara flyers are accustomed to.

Additionally, Singapore Airlines recently announced that the Indian government had approved its foreign direct investment (FDI) in Air India, signalling further steps in the merger process between the two airlines.