Full service Vistara decides to junk premium class on low income routes

The airline will have an all-economy cabin for Tier B and Tier C cities

In a significant change of strategy, Vistara has decided to drop business class and premium economy seating from some of its aircraft. The airline, a joint venture of Tata Sons and Singapore Airlines, has a three-class cabin. Since inception, it has tried to differentiate itself as a premium brand, in an Indian market dominated by low-cost carriers (LCCs) where intense competition narrows the space to raise fares.

The change underlines the necessity of a hybrid product for full-service airlines in the Indian market, despite the risk of operational complexity and confusing of customers. Both Air India and now-grounded Jet Airways had