 "Tata Sons, Singapore Airlines to invest Rs 250 cr more in Vistara")
The decision to invest this amount, by way of a rights issue, was approved by the airline’s board earlier this month, according to Vistara’s filing to the corporate affairs ministry.
The investment commitment comes close on the heels of a Rs 150-crore equity infusion into the airline.
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The airline is preparing for international operations and is evaluating fleet growth and network options.
The carrier’s board has also approved an increase in Vistara CEO Phee Teik Yeoh’s remuneration up to Singapore dollar (SGD) 800,000 (Rs 3.9 crore) for FY17 up from SGD 665,000 (Rs 3.26 crore) in the previous year.
Phee Teik Yeoh is on deputation to Vistara from Singapore Airlines and his remuneration is paid by Singapore Airlines. The amount is reimbursed to Singapore Airlines by Vistara.
A Vistara spokesperson declined to comment.
Tata Sons and Singapore Airlines own 51 per cent and 49 per cent, respectively, in the airline and have infused Rs 750 crore equity into it since its formation in 2013.
The airline began operations last January.
At present, it operates 11 Airbus A320 aircraft and has a market share of 2.4 per cent. The airline will increase its fleet to 13 next month and according to its initial plans, it will have 20 aircraft by June 2018.
The airline management is also contemplating advancing the aircraft deliveries, but last month its chief commercial and strategy officer Sanjiv Kapoor told this paper that no decision was taken in this regard.
Recently, Vistara hired an auditor to help it secure International Air Transport Association’s operational safety certification.
It is also negotiating commercial partnerships such as interline and code-share agreements with foreign airlines.
In June, the government relaxed the controversial 5/20 rule, which required airlines to complete five years of operations and have 20 aircraft before becoming eligible to fly abroad.
Under the new norms, the airline only requires 20 aircraft to launch overseas flights and the government’s decision will make it easier for the airline to start foreign operations.
EXPANSION ON CARDS
- The decision to invest this amount, by way of a rights issue, was approved by the airline’s board earlier this month
- The investment commitment comes close on the heels of a Rs 150-crore equity infusion into the airline
- It would increase its fleet to 13 next month and according to its initial plans, it will have 20 aircraft by June 2018
- The management is also contemplating advancing the aircraft deliveries