Air Vistara

Sushubh

Sushubh

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http://www.readability.com/articles/nkik2ylh
India's Tata conglomerate and Singapore Airlines will form a full-service airline based in New Delhi, adding a deep-pocketed player to a fast-growing but competitive Indian aviation sector where most operators lose money.Tata Sons said it will own 51 percent of the carrier and Singapore Airlines will own the remainder. Singapore Airlines said the initial outlay of $100 million would be funded by the two sides in proportion to their ownership.
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They are already involved in Airasia!
After the rule change, Malaysia's AirAsia Bhd and Tata, India's biggest business house, announced in February a joint venture to launch a low-cost airline in India, while Abu Dhabi's Etihad agreed in April to buy a 24 percent stake in India's Jet Airways.
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What will happen to Tata's investment in AirAsia? Or would Tata continue to have shares in both Airlines?
BTW I guess new Airlines would be having active involvement by Tata then compared to AirAsia as they own 51% shares in new venture.
 
I do not understand Ratan Tata's obsession with airlines. 😀 I mean I know that he is a pilot himself. But it's not like airlines are doing extremely well in India. Why enter a stupid market where government regulations makes it hard to let you operate efficiently.
 
This is their 3rd (or may be even more) to get into Airlines after Independence 🙂
May be third time lucky. (Hopefully they didnt had to bribe any Central minister to get license).
 
If Tata did that, they would have been what Reliance is today. Maybe Cyrus Pallonji Mistry is doing what Ratan Tata never did 😀
 
Let's see if the government lets them run an Airline company this time around.
 
Agreed, But in this case there is no consolidation.

Vistara will give Jet Airways some stiff competition in the full service segment, thereby lowering prices. (This is also why Jet Airways is consolidating its brands - - to be able to continue competing as a full service carrier). Jet had gone downhill a few years ago because of the lack of competition (Air India, but in my experience LCC's offer better services than our flagship full service airline) and the fact low cost carriers were offering slightly cheaper flights without any of the frills. Jet was able to cut a lot of the benefits it offered passengers.

Now, with the introduction of Vistara. Jet had to decide whether it wanted to compete in the low cost segment or full service. An announcement by Mr.Goyal today confirmed that Jet is geared to take Vistara head on and drop Jet Konnekt and their confusing brand image.

The low cost segment already has plenty of players and will continue the way it is, Although I am optimistic that the entry of AirAsia will further impact prices
 
Tatas Vistara Takes to Skies Today With Delhi-Mumbai Flight - NDTVProfit.com
Vistara will be the third full-service carrier in the country, after state-run Air India and private carrier Jet Airways.
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Vistara, which has two leased A320s as of now, will operate 148-seater Airbus A320-200 with 16 seats in business class, 36 in premium economy and 96 in economy on these routes.
The airline will operate flights from its Delhi base to Goa, Mumbai, Bengaluru, Ahmedabad, Hyderabad, Chandigarh, Srinagar, Jammu and Patna in the first year, the airline had stated in the plan, submitted to DGCA at the time of applying for air operator permit.
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