Airline News
Vistara receives cash injection and signs MRO deal with Pratt & Whitney
September 11th 2015
Singapore Airlines (SIA)/Tata Group joint venture, Gurgaon-based Vistara, has received an additional two billion rupees ($30.1 million) from its investors. Commenting on the latest cash injection, a Vistara spokesman said the carrier was “sufficiently funded to manage operations in the initial phase, but was likely to review its strategy “as and when required”. Read More »
Vistara is reporting an average load factor of approximately 60% since its inaugural service on January 9 this year, a result that likely will render profits at the full-service carrier elusive. This Week in Asia-Pacific Aviation understands from executives at Vistara that its premium economy product, in particular, has been underperforming.
Vistara, alongside other recent market entrants in India, is advocating that India’s Directorate General of Civil Aviation (DGCA) abolish the country’s infamous 5/20 rule, which requires carriers to operate a minimum of 20 aircraft over five years before they can introduce international services. In March, Vistara chief, Phee Teik Yeoh, hinted he would seek an exemption or changes to the rule. “When the 5/20 rule goes away, it’s a new ball game. Then there are lots of opportunities.” It would presumably be of particular interest to Vistara to fly to Singapore for global connectivity through parent SIA’s network.
Vistara last week appointed two non-aviation directors to its board, Som Mittal and Sangeeta Pendurkar, both of whom have had senior roles in the Indian automotive and F&B sectors, respectively.
The carrier also has signed a contract with Pratt & Whitney for aftermarket services for its fleet of 26 V2500 engines. Commenting on the deal with the engine maker, Yeoh said the carrier “needed a reliable and effective maintenance partner and we are confident that the V-Services agreement with Pratt & Whitney will help us minimise unscheduled removal of engines and provide the highest standards of safety”.
