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UK320Vistara, the TATA-SIA joint venture domestic full service airline based out of Delhi will connect Bangalore to Delhi and Mumbai effective 16th June 2015 (tomorrow), with one flight each way, each day. This will coincide with the 159th day of operation of the airline. The airline also doubles the Delhi-Lucknow and back frequency. In the process, the airline will withdraw one service between Mumbai and Ahmedabad (UK968 and UK953), reducing the weekly frequency to 6 from 13.

The Delhi-Lucknow sector is faring well for the airline.

After the addition of the new sectors and withdrawal of flights, Vistara will operate 237 weekly flights with six aircraft connecting 10 cities, deploying a weekly capacity of 35 million ASKs. This is a remarkable growth in just a little over six months of operations.

Of these 35 million ASKs, 21 million are deployed on category 1 (CAT I) routes that connect metros to metros. The remaining are deployed on CAT II routes (connecting ‘neglected’ regions with other cities), CAT IIA routes (connecting cities/towns within neglected regions), and CAT III routes (connecting other cities not included in CAT I, II and IIA). The capacity on CAT II, IIA, III routes are 12%, 2% and 51% of the CAT I capacity, meeting and exceeding the DGCA requirement for capacity deployment on these routes.

The airline’s six aircraft will fly up to 35 flights a day. One of the aircraft rotations fly up to 12:20 hrs, while the Bangalore rotation flies 8:55 hrs. The average aircraft utilisation will settle at 11:14hrs per aircraft per day. Typical turnaround time is 40-45 minutes.

The flight from Bangalore halts at Mumbai for 5:25 hours, sufficient to operate a Mumbai-Goa sector – something the airline isn’t keen on operating now due to the stiff competition on that route. The Delhi-Bangalore flight operates in the morning and the return in the evening, making it very convenient for a Delhi business traveller, but unattractive to a Bangalore based business traveller. For a corporate focussed airline, this sparse service is a surprise. AirAsia India, which caters to the leisure traveller, offers much better frequencies and timings for business travellers based at either city. The airline will increase frequencies on the Bangalore – Delhi sector with the induction of its 7th aircraft.

The airline however offers multiple other connections to Delhi from Bangalore via Mumbai, with the most attractive connection (direct, lowest cost) being featured at the bottom of the list of options. This may need to be corrected to sort by connections, rather than time of departure.

BLR-DELThe airline’s target of a 9 aircraft fleet by end of calendar year 2015 still sticks. Two of the aircraft will be fitted with the wireless in-flight entertainment system, which will later be rolled out fleet wide after an evaluation on these two aircraft.

Vistara, which by end of year will be a true full service carrier with the IFE system, is launching a new in-flight menu offering from 1st July. The new menu is derived from the feedback received from customers over the last six months of operation.

The airline is tying up with multiple companies of the TATA group to offer cross-company benefits to customers.

The month of May was the first month of high travel demand (one of the two high domestic demand months in a calendar year) that Vistara witnessed. Load factors at the airline were 69%.

The airline’s relatively low brand awareness may be impacting the airline’s loads and perhaps in part its pricing power. Marketing activities at the airline may need to be stepped up to effectively communicate the benefits of a fairly less known and new product – premium economy, which accounts for 24% of the airline’s seats.

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