Vistara CEO on Fighting India's Low-Cost Carriers and Nagging Merger Questions

Ankit Gupta, the India CEO of hospitality technology platform Oyo, and Mandar Vaidya, the head of Oyo’s European operations, will both be moving on from the company.

Only 25% of Indians traveling abroad purchase travel insurance well in advance while making travel arrangements, while the majority of them wait until the last three days to buy it, according to data compiled by insurance aggregator Policybazaar.

Antitrust watchdog Competition Commission of India (CCI) has approved Tata group’s plan to merge its full-service carriers Air India and Vistara. 

Malaysia’s Capital A will not be merging its airlines, but will instead move all the carriers under one existing structure, similar to how British Airways, Iberia Airline, and Aer Lingus operate under the International Airlines Group umbrella, said CEO Tony Fernandes on Monday.

Tata Sons and Singapore Airlines have agreed to consolidate Air India and Vistara by March 2024.

AirAsia Aviation Group on Friday announced a joint venture with Cambodia-based Sivilai Asia to launch a new low-cost carrier — AirAsia Cambodia.

India is making a PCR Covid test mandatory for inbound arrivals from China, Singapore, Hong Kong, Thailand, Japan, and South Korea, from January 1.

Indian carrier Vistara reported its first-ever net profit for the quarter ending December 2022, according to statement from the airline on Monday.  

The Tatas will let go of Indian full-service carrier Vistara as they look to merge the airline with the more “internationally-recognized” Air India, Air India CEO Campbell Wilson said on Monday.

India is expected to overtake Germany to become the world’s third most powerful travel and tourism market by 2032, according to World Travel and Tourism Council’s Economic Impact Research.

India will invest around $12 billion over the next two years in airports, aircraft and recruitment to meet the booming demand for air travel. The country aims to increase the number of airports from the present 148 to 220 by 2025, for which private builders will contribute roughly $9 billion, with the balance coming from the government-run Airports Authority of India. It entails new terminal construction, greenfield projects, and refurbishment of existing buildings, including old military airfields from the colonial era, as per a Bloomberg report. “We need to put in place the civil aviation infrastructure and capabilities that by 2047 would be able to support a $20 trillion economy within India,” said the country’s civil aviation minister Jyotiraditya Scindia at the ongoing CAPA India Aviation Summit in New Delhi. Scindia said passenger capacity at India’s six major airports is expected to grow to 420 million in four years from 192 million today, and Indian carriers’ fleet will grow to 2,000 aircraft in five years from 700. Additionally, India has eased leasing rules for airlines to lease more aircraft to address aircraft shortages as travel rebounds from the pandemic. He also highlighted how India had tweaked its airplane leasing program to enable airlines to add more aircraft to meet passenger demand, including more “wet leasing,” or renting of planes with crew, for domestic and international routes. Tata Group-owned Air India last month announced a record order for 470 jets and is due to take another 25 leased aircraft.

Indian companies have failed to set targets to reduce corporate travel emissions, according to an annual report by campaign group Transport & Environment. Globally, only 50 companies out of 322 have set targets to reduce business travel, with information technology (IT) services company Wipro paving the way in India. Wipro has achieved a 15-20 percent reduction in air travel emissions between the 2015 and 2020 period. Among all 10 Indian companies featured in the ranking report, only IT services provider Tech Mahindra reports on air travel emissions specifically. “Advancements taking place in India are mostly being led by the technology industry. We invite these technology companies to continue to work on their travel policies and demonstrate leadership to catalyze change in other industries,” said Denise Auclair, corporate travel manager at Transport & Environment. Of the companies that have targets, only four companies meet the “gold standard” of reporting air travel emissions and commitment to reducing them by 50 percent or more, by 2025 or sooner. These are Novo Nordisk (pharmaceuticals, Denmark), Swiss Re (finance, Switzerland), Fidelity International (finance, Britain) and ABN Amro (finance, the Netherlands).