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Old 9th January 2015, 15:26   #1
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Default Vistara: Tata's new commercial airline

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It will be another historic event when the Airbus A320 aircraft of Vistara, the full-service joint venture of Tata Sons and Singapore Airlines, takes off on its maiden flight — from Delhi to Mumbai — on Friday afternoon. This will mark Tatas’ re-entry in the airline business after over six decades. Though the Tatas own a 30 per cent stake in AirAsia India as well, they are far less involved in its operations.
On the afternoon of October 15, 1932, the Postmaster of Bombay and other dignitaries assembled in the city’s Juhu area to welcome a tiny Puss Moth aircraft carrying post from Karachi.

Piloted by J R D Tata, the flight had a historical significance — it was the first such mail service by an Indian company, and it laid the foundation of Air India.
Excerpts from Business Standard
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Last edited by rajeev k : 9th January 2015 at 15:30.
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Old 9th January 2015, 16:21   #2
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Default Re: Vistara: Tata's new commercial airline

I hope Vistara survives. I find it hard to understand why people venture into this airline business - we have so many who have folded up in India in the past decade. I am not sure how many of the operational airlines make any profits each quarter.

Having said that, Tata's were always passionate about the Airlines business and I wish Vistara to get off to a flying start. A full service airline - coming up at a time when most of the flying population have now forgotten what it means like to be served food and other stuff while flying. I for one miss those..and hope to be taking the Vistara the next time I get an opportunity to fly domestic.
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Old 9th January 2015, 16:45   #3
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Default Re: Vistara: Tata's new commercial airline

I used to love Kingfisher airlines for their service and in-flight entertainment. They were slightly costlier than Indigo/Spicejet types but the additional fare was worth the experience. Hope Vistara will give a breath of fresh air.
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Old 9th January 2015, 18:04   #4
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Default Re: Vistara: Tata's new commercial airline

Damania Airways started the trend of superlative service which was followed by Kingfisher and you see what happened to them. I guess in the wake of giving superior service, sometime they overstretch their reach. Vistara is a Tata airline and we must not underestimate them, they must have thought of something before venturing into a business like this. Im sure they have worked out their logistics.
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Old 10th January 2015, 19:15   #5
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Default Re: Vistara: Tata's new commercial airline

Few people know / remember that our beloved Air India is actually Tata Airlines (post-nationalisation of the same) `

Vistara is backed by a group with incredibly deep pockets, so they'll never see the kind of cash crunch that Kingfisher and - more recently - SpiceJet faced. Tata is also an expert in operations...the airline industry requires operational brilliance for success.

Plus, their differentiator is 'full service'. No one knows hospitality better than Tata (Taj Hotels), while Singapore Airlines has a stellar reputation for quality too.

I personally think the timing couldn't have been anymore perfect for Vistara. You can count the strong players on your fingers, many have vanished, and few have the inclination to enter the segment.

Good luck, Tata!
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Old 10th January 2015, 20:33   #6
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Default Re: Vistara: Tata's new commercial airline

Vistara has entered in the right time and in the right segment.

As on date Delhi-Mumbai fare not very different from other so called Low cost airlines.

So if their in-flight and ground customer service matches to Tata's hospitality standards, they can give good competition to other airlines.

For us, "The Customers", Vistara's entry to the field, is definitely an advantage and hope they expand steadily to other cities.

Last edited by Ram_NP : 10th January 2015 at 20:35.
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Old 10th January 2015, 23:14   #7
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Default Re: Vistara: Tata's new commercial airline

Their timing to enter the market couldn't have been better.

To start with, competition is in disarray, Kingfisher is already folded up and Spicejet is going through turbulent times, even Jet Airways is making losses and is only saved due to cash infusion by Etihad. As always, Air India is big cash drain for taxpayer. Only Indigo and to some extent Go Air are in good health. Not sure about how Air Asia is shaping up.

Another major factor is recent crash in fuel prices. Remember fuel costs are biggest chunk of airline operating costs. While it will benefit all players, but unlike others, Vistara does not have its balance sheet affected by high fuel prices from last few years.

From what I read in media reports, although they will project it as premium product but they will not indulge in lavish expenses, which mean they will steer clear of Vijay Mallya style of management. I think involvement of SIA, one of the top players in industry and Tata, India's most respected business house will ensure that this ship (or plane in this case) sails fine and proper.
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Old 10th January 2015, 23:15   #8
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Default Re: Vistara: Tata's new commercial airline

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Originally Posted by GTO View Post
Vistara is backed by a group with incredibly deep pockets, so they'll never see the kind of cash crunch that Kingfisher and - more recently - SpiceJet faced. ..the airline industry requires operational brilliance for success. ..... many have vanished, !
The list of Airlines that have vanished either discontinued or merged with other Airlines are mainly,
Air Deccan,
Damania Airways,
East West Airlines,
Air Sahara,
Air mantra,
Archana Airways,
Bharat Airways,
Kingfisher Airlines,
NEPC Airlines,
And probably some more.
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Old 11th January 2015, 11:07   #9
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Not sure how many are aware of operation of Air Coasta. A new group opened operations a year back. They operate to tierII cities.
So many venture and incidentally everyone who are entering air lines business have good financial background.
But outlook in the business is not good and that makes them to stop infusing funds. Remember Maran and his wife are one of the highest paid CEO's in country. They have enough to fund but are reluctant. All I understand is, his links in the Aircel- Shivsankaran case, has prevented foreign funds. That was about to happen in Aug- Sep. But due to filing of charge sheet, has stopped funds and invited disaster.
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Old 11th January 2015, 12:50   #10
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Default Re: Vistara: Tata's new commercial airline

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Originally Posted by rajeev k View Post
The list of Airlines that have vanished either discontinued or merged with other Airlines are mainly,
Air Deccan,
Damania Airways,
East West Airlines,
Air Sahara,
Air mantra,
Archana Airways,
Bharat Airways,
Kingfisher Airlines,
NEPC Airlines,
And probably some more.
Add Paramount airways to the list, loved their enbraer jets!
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Old 11th January 2015, 13:31   #11
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Default Re: Vistara: Tata's new commercial airline

Finally Mr. Ratan Tata fulfills his personal dream of owning a airliner
Good luck to Tata's and will definitely consider Vistara for my next domestic trip.
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Old 11th January 2015, 16:20   #12
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Default Re: Vistara: Tata's new commercial airline

A lot of factors might work in favor of Vistara. Two things which haven't been mentioned in the thread yet are

1. http://www.tajsats.com/
TATAs & Singapore Airlines have a very successful partnership in the Air Catering business.
2. Falling Fuel Prices.
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Old 11th January 2015, 16:57   #13
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Default Re: Vistara: Tata's new commercial airline

I hope the food in Vistara would be exceptional. I actually expect it, considering that the major food supplier to all airlines, Tajsats is owned by Tata.

The biggest grouse with Airline travel is usually the food, and Tata here has the upper hand, I hope they utilise it to the full potential.
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Old 11th January 2015, 23:06   #14
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Default Re: Vistara: Tata's new commercial airline

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Originally Posted by Ashley2 View Post
Remember Maran and his wife are one of the highest paid CEO's in country.
Maran's networth is $2 billion. Tata Group is anywhere between 50 - 100 times bigger than that. You can't even compare the backing power of the Tata Group with Maran. Also remember that Tata rarely exits a business it enters. For example, their automotive / passenger car division is languishing since a while, but they haven't given up.

Again, I think 2015 provides the best window for Tata to launch Vistara. The number of strong competitors has diminished, and Tata has the deepest pockets to sustain its airline. Indigo & Jet must be very worried.
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Old 12th January 2015, 00:30   #15
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Default Re: Vistara: Tata's new commercial airline

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Originally Posted by GTO View Post
Maran's networth is $2 billion. Tata Group is anywhere between 50 - 100 times bigger than that. You can't even compare the backing power of the Tata Group with Maran. Also remember that Tata rarely exits a business it enters. For example, their automotive / passenger car division is languishing since a while, but they haven't given up.
Well said GTO. I am glad that two organizations, Tata's and SIA, have come together to form an airline in India. The country and its travelling public will benefit from the fact that both are organizations with corporate governance and integrity and for once we have an airline which has no link whatsoever with any politician. Air Vistara have ordered 20 A320 aircrafts and plan to expand their fleet after stabilizing operations. Healthy competition will benefit the customer and keep all airlines on their toes. The other silent player to watch out for is regional carrier Air Costa. Photo shows first Vistara bird arriving at Palam, Delhi
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