Vistara says premium economy seats a hit; more passengers opting for them

Vistara says premium economy seats a hit; more passengers opting for them

Vistara, the joint venture between Tatas and Singapore Airlines, has said that the premium economy class is gaining traction as the airline aims to strengthen its position in the full-service carrier segment. The airline, which was the first to introduce premium economy class in India, has witnessed a significant increase in the number of passengers opting for these seats. With a fleet of 67 planes, Vistara currently operates around 320 flights daily on domestic and international routes, and plans to induct three more aircraft by April this year.

The airline currently provides premium economy class on its three operated aircraft models: Airbus 320 neo, Airbus 321, and Boeing 787-9 Dreamliner.

Chief Commercial Officer of Vistara, Deepak Rajawat told PTI that the premium economy class has gained popularity among passengers. He emphasized that it is a unique feature offered by the airline, providing added value to customers. Rajawat highlighted the benefits of premium economy compared to economy class and acknowledged the positive growth of premium economy in the last few years.

India is experiencing rapid growth in its civil aviation market, with domestic air passenger traffic rebounding strongly after the impact of the COVID-19 pandemic. In the first nine months of this fiscal year, domestic air passenger traffic recorded a 16% increase, surpassing the pre-pandemic levels of April-December 2019. Vistara currently holds a domestic market share of 9.4%, according to official data from November.

Addressing concerns about rising airfares, Rajawat stated that the airline strives to strike a balance between supply and demand. He emphasized the importance of determining the right pricing strategy for each cabin class.

Vistara is in the process of merging with Air India as part of the Tata group’s consolidation of its airline business. The merger is expected to be completed by mid-2025, with all legal approvals anticipated by the middle of this year. Under the merger agreement, Singapore Airlines will also acquire a 25.1% stake in Air India. Vistara’s CEO, Vinod Kannan, has expressed that the merger aims to foster growth and will incorporate the consumer-focused services, operational excellence, and staff of both airlines.

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