Vistara's approval came at a time when struggling-to-survive SpiceJet has drastically cut its fleet and flights, leading to a surge in fares due to demand-supply mismatch in the ongoing peak travel season. The Tata-SIA JV, which takes off after two aborted attempts in the past, is going to ease the supply crunch in coming months and also provide more international options for travellers as the government is set to relax norms for Indian carriers to fly abroad.
Vistara CEO Phee Teik Yeoh said: "All our energies now are going to be concentrated towards fulfilling the Vistara brand promise. Our focus on customer service excellence coupled with unique product offerings will ensure seamless travel experience to our customers." The airline will soon make an announcement on the start of sales, routes and schedules.
Vistara chairman Prasad Menon said: "We are aware of the expectations we have to live up to and look forward to shaping a success story in Indian Aviation with the realization of this dream." Tata Sons holds the majority 51% stake in the company and SIA has the rest. The JV promises to "set new standards in the aviation industry in India".
The Delhi-based airline's launch has been delayed by many months as it had aimed to start operation by September or October this year. It had applied for the licence on April 24, after getting the aviation ministry's no objection certificate.
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