Vistara to go international once 5/20 rule goes away

Vistara, which is 51:49 joint venture between Tata Sons and Singapore Airlines Ltd, was granted its air operator permit last week.

December 22, 2014 07:07 pm | Updated 07:07 pm IST - New Delhi

Even as the airline is reading to take off to skies on January 9, Vistara plans to start international operations as and when the government decides to do away with 5/20 rule that mandates a carrier to be five-year-old and have at least 20 aircraft in its fleet before being allowed to serve international market.

Meanwhile, the airline will partner Singapore Airlines and other international carriers to offer international connectivity to passengers.

“The writings are on the wall (for the government to do way with the 5/20 rule). If the Indian aviation industry has to be on the global map, this rule must go…We are hopeful that 5/20 rule goes away. When it does we will look at expediting overseas expansion,” Vistara chief executive officer Phee Teik Yeoh told reporters here.

On Monday, the airline, unveiled its product, brand music, in-flight meal service and frequent flyer programme — Club Vistara.

Vistara, which is 51:49 joint venture between Tata Sons and Singapore Airlines Ltd, was granted its air operator permit last week. The company will be headquartered here and will begin operations with two Airbus A 320.

The company’s Chief Commercial Officer Gian Ming Toh said they plan to increase the fleet size to five by March and further to 20 in the four years of operation.

He added Vistara is working on airline interline agreements. While the partnership with Singapore Airlines was announced today, the company is in discussions with other international airlines.

Asked if Vistara will participate in fare wars, Mr. Toh said pricing will depend on supply-demand situation. Talking about hiring of staff, he added the company has hired in excess of 400 people.

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