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http://www.bloomberg.com/news/artic...r-giving-away-tickets-in-india-s-tough-market
Singapore Air Giving Away Tickets in India’s Tough Market
Anurag Kotoky Manish Modi
August 17, 2015 — 2:31 AM HKT Updated on August 17, 2015 — 11:43 AM HKT
Singapore Airlines Ltd.’s premium Indian carrier Vistara has resorted to free tickets as intense competition and low fares add to the task of wooing passengers.
Vistara, jointly owned by Singapore Airlines and Tata Sons Ltd., filled about 59 percent of seats on average in the first half of 2015, government data show. That’s the least of eight major passenger carriers operating in Asia’s third-largest economy. SpiceJet Ltd., which last year offered base fares as low as 1 rupee (2 cents), filled more than 87 percent.
Vistara on Aug. 12 offered a free premium economy class ticket -- a tier it pioneered in the domestic Indian market -- with every business class ticket purchased. Vistara didn’t comment on whether the move is aimed at filling more seats.
Given Vistara’s three-class configuration of business, premium economy and economy, “it’s too simplistic to look at the load factors relative to airlines with a single class, high density configuration of 180 plus seats,” Chief Commercial Officer Giam Ming Toh said in e-mailed responses to questions.
Indian companies are already adding Vistara’s premium economy as an option in their employee travel policies, he said. Its load factor rose to 71 percent in May from 53 percent in March, he said, adding the airline’s fleet will expand to nine from six in the next three months.
Singapore Airlines fell 0.6 percent as of 11:34 a.m. in the city state. The stock has dropped 13.5 percent this year.
CHART 1: Vistara’s average load factor was 59.2 percent in its first six months of operations. AirAsia India Ltd., AirAsia Bhd.’s local unit, got more than 70 percent in its initial six months.
CHART 2: Jet Airways, the biggest full-service carrier in India, had an 84 percent load factor in the first half of 2015, about 25 percentage points more than Vistara.
CHART 3: Vistara flew about 71,500 passengers per aircraft during the first six months of 2015. Only state-run Air India Ltd. was lower.
CHART 4: AirAsia India and Vistara are seeking approval from the Indian government for the biggest increase in weekly winter departures compared with the summer schedule.
Singapore Air Giving Away Tickets in India’s Tough Market
Anurag Kotoky Manish Modi
August 17, 2015 — 2:31 AM HKT Updated on August 17, 2015 — 11:43 AM HKT
Singapore Airlines Ltd.’s premium Indian carrier Vistara has resorted to free tickets as intense competition and low fares add to the task of wooing passengers.
Vistara, jointly owned by Singapore Airlines and Tata Sons Ltd., filled about 59 percent of seats on average in the first half of 2015, government data show. That’s the least of eight major passenger carriers operating in Asia’s third-largest economy. SpiceJet Ltd., which last year offered base fares as low as 1 rupee (2 cents), filled more than 87 percent.
Vistara on Aug. 12 offered a free premium economy class ticket -- a tier it pioneered in the domestic Indian market -- with every business class ticket purchased. Vistara didn’t comment on whether the move is aimed at filling more seats.
Given Vistara’s three-class configuration of business, premium economy and economy, “it’s too simplistic to look at the load factors relative to airlines with a single class, high density configuration of 180 plus seats,” Chief Commercial Officer Giam Ming Toh said in e-mailed responses to questions.
Indian companies are already adding Vistara’s premium economy as an option in their employee travel policies, he said. Its load factor rose to 71 percent in May from 53 percent in March, he said, adding the airline’s fleet will expand to nine from six in the next three months.
Singapore Airlines fell 0.6 percent as of 11:34 a.m. in the city state. The stock has dropped 13.5 percent this year.
CHART 1: Vistara’s average load factor was 59.2 percent in its first six months of operations. AirAsia India Ltd., AirAsia Bhd.’s local unit, got more than 70 percent in its initial six months.
CHART 2: Jet Airways, the biggest full-service carrier in India, had an 84 percent load factor in the first half of 2015, about 25 percentage points more than Vistara.
CHART 3: Vistara flew about 71,500 passengers per aircraft during the first six months of 2015. Only state-run Air India Ltd. was lower.
CHART 4: AirAsia India and Vistara are seeking approval from the Indian government for the biggest increase in weekly winter departures compared with the summer schedule.
