Saturday, December 20, 2014

Vistara starts bookings, keeps fares much higher than competition

New Delhi: Vistara, the airline begun as a joint venture between Tata Group and Singapore Airlines, opened bookings from Thursday night for its first flights from January 9.

The fares are substantially higher than those of its full-service carrier rivals, Jet Airways and government-owned Air India (AI). It, however, will be the first in India to offer premium economy seating and a value-based frequent flyer programme, where bonus points would be given not on miles flown but on what you pay.Vistara will commence services between Delhi and Mumbai on January 9 and will link the two cities to Ahmedabad the next day, in 148-seater Airbus A320 aircraft (16 business, 36 premium economy and 96 economy class seats).

Rivals were quick to react. Jet said it was giving double to triple bonus frequent flyer miles to passengers on the Vistara routes. Vistara has not yet announced its agents’ commission. It will target both leisure travel and corporate travel, sectoral sources said.

Unlike low-cost carriers, which tend to offer discounted fares when they launch, Vistara has preferred to maintain its premium image here, a relief to many airlines that it would not go for a price war.
20/12/14 Sounak Mitra & Aneesh Phadnis/Business Standard
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