Performance 'good' amid competitive environment: Vistara chief

Emphasising that Vistara's performance has been "good" in a competitive environment, its chairman Prasad Menon today said the airline's business plan would not be impacted even if the government decides to continue with existing international flying norms.
Vistara, a joint venture between Tatas and Singapore Airlines, began operations in January this year but almost an average of 40 per cent seats in its aircraft have remained vacant.
"It has been a very short period for the airline. (It is) very early days. We are happy generally the way things have gone... We have been operating in a very competitive environment," Menon told reporters here.

Acknowledging that its load factor has been a little low, he said there has been good response to Vistara's "differentiation in services excellence" which include a new cabin class 'Premium Economy'.
Vistara is the only domestic airline to have introduced this particular segment which is positioned between 'Business' and 'Economy' classes.
To a query about having three classes for passengers in its flights, Menon said, "actually there is very good response... There has been a steady growth in occupancy".

During January-August period, Vistara's average load factor -- an indicator of seat occupancy -- hovered around 60 per cent. In August, it stood at 62.9 per cent.

Currently, the airline has a fleet of seven A320 aircraft.
Observing that 5/20 is a bad rule, Menon said there is no reason why the government cannot change it when previous governments have changed policies.
Under 5/20 norms, only local carriers having a fleet of 20 planes and five years operational experience are allowed to fly overseas. The government is discussing the viability of doing away with the rule, which restricts new carriers such as Vistara and AirAsia India from flying abroad immediately.
While a final decision on whether to scrap 5/20 rule is yet to be taken, there is a clear divide over the issue between established players and start up airlines with the latter group seeking removal of the norm to fly abroad.

"As and when 5/20 rule is modified or whatever, we will look at flying overseas but our basic model has been that we want Vistara to be a strong and good domestic carrier," Menon said.
He, however, said that Vistara is a long term player and its business plan would not be affected even if the government decides to continue with the 5/20 rule.