Vistara confident govt will soon abolish 5×20 Rule for flying


New Delhi, December 22

Tata-SIA joint venture airline Vistara today sounded confident that the government would soon scrap the mandatory norms of five years’ domestic service and 20-aircraft fleet for flying overseas, which will help it serve on the international routes too.

The airline, which will start its operations on January 9 on three domestic routes, said it will determine ticket prices based on the demand-supply situation and will leverage IT and technology to keep the cost under control.

Vistara Chief Executive Officer Phee Teik Yeoh said, “We are hopeful that the ‘5×20 Rule’ will go away shortly. If the Indian aviation industry has to be on the global map, this rule must go… The writing is on the wall.”

Yeoh said Vistara will be expending its operations to international market and look at inducting wide-body aircraft including Boeing planes once the government abolishes the ‘5×20 Rule’, which mandates a carrier to be five-year-old and have at least 20 aircraft in its fleet before being allowed to serve international market.

On fares, he said pricing will depend on the demand, “but our focus will remain providing value for money to the passengers”.

The New Delhi-based full service carrier, in which Tata Sons holds 51 per cent stake and Singapore Airlines remaining 49 per cent, will start operations on Delhi-Mumbai, Delhi- Ahmedabad and Ahmedabad-Mumbai routes.

Vistara planes will have three class configuration — Business, Premium Economy, which is being introduced for the first time in the country, and Economy.

Yeoh said Vistara was committed to have a fleet of 20 Airbus A320 aircraft by the fourth year of operations, and added “we will take the delivery of the third and the fourth plane very soon”. Vistara plans to keep a fleet of five aircraft by March next year.

The airline plans to operate 87 flights in the first year with a fleet of five Airbus A320 aircraft, and then scale it up to 301 flights by the fourth year.

Airline’s Chief Commercial Officer Giam Ming Toh said that Vistara has tied up with its 59 per cent equity partner Singapore Airlines for an interline pact, which would allow its passengers to travel seamlessly from Singapore onward.

The airline is discussing such arrangements with other global carriers as well, he said.

Earlier, the airline unveiled its product, brand music, in-flight meal service and frequent flyer programme – Club Vistara. As part of its product offering the airline announced a series initiatives including multi-mode check-ins, meal services among others.

The airline will offer check-in facility through web, mobile, through cabin class-wise counters at the airport and even through roving agents at the airport. Return check-in are also available.

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