Rapid Expansion: India’s Vistara Keen To Add Up To 12 Destinations

Indian full-service carrier Vistara took off in 2015 and began international service in 2019. Some ten international destinations will be served this winter, most under ‘bubble’ agreements, while the US edges closer. Vinod Kannon, Vistara’s Chief Commercial Officer and Chief Executive designate, told Routes that it expects to add 10-12 additional destinations soon.

Vistara fills a void

In 2020, Vistara added eight aircraft: four A320neos, two A321neos, and two B787-9s. However, it returned four older A320ceos, so net fleet growth of four aircraft. Kannon reaffirmed the carrier’s commitment to a 70-strong fleet in the next two years, over 55% more than it currently has. Expect more route announcements soon.

There will be a higher emphasis on all-economy aircraft to penetrate more domestic markets. Nonetheless, Kannon remained confident that “Vistara fills a void in the market as a modern Indian airline with a brand-new fleet offering a world-class travel experience.” He told Routes that:

“We are uniquely positioned with a clear competitive edge. We believe we are at par with most well-established global carriers, offering the experience of our brand-new B787-9 aircraft.”

Vistara is firmly committed to long-haul

Despite the pandemic, Kannon said that Vistara remains firmly committed to its long-term expansion plans. “We see great potential for long-haul non-stop flights from India and have been steadily growing our global network.”

Like many other carriers, Vistara’s network planning is “now being revisited on a daily or, at best, weekly basis,” rather than monthly or seasonally. And while travel bubbles have driven its international network, Kannon said most places were already in its network plans. It has used the pandemic to make inroads into international markets and to get its brand out there.

“Since the start of the pandemic, we have expanded our network with London Heathrow, Dhaka, Dubai, Doha, Frankfurt, Sharjah, Male, and Tokyo. We will be operating non-stop flights from Delhi to Paris CDG starting November 7th. We have also operated charter flights to many other destinations, including Hong Kong and Seoul.”

10 to 12 destinations as soon as possible

Having received a foreign air carrier permit to serve the US, international markets are very much part of Vistara’s future to become a “globally renowned airline.” Some 10 to 12 destinations will be added “as soon as we can,” but whether these are international, domestic, long-haul, or short-haul was not clarified.

Kannon said he hopes to launch the US “in the coming months.” Of course, he did not indicate where Vistara will fly or when they’ll begin, or to what degree it’ll rely on partner United Airlines.

However, we think Vistara’s US operations will be from Delhi and probably a large and renowned market, rather than anything overly unusual or innovative. This seems to be the airline’s approach to network development thus far.

Delhi to JFK is the largest market

With 253,000 round-trip passengers in 2019, Delhi to JFK is the largest Indian market to the US. However, as you’d expect from heavily visiting friends and relatives (VFR) demand, fares aren’t high on average.

When broken down per nautical mile, the Delhi-JFK average fare in 2019 ($449) was 37% lower than Washington to Amman, a route United will launch in May 2022. Yet, Delhi-JFK is 23% longer.

• Delhi-JFK: 253,000 passengers in 2019; $449 one-way fare (excluding taxes/fuel surcharge)
• Delhi-San Francisco: 284,000; $438
• Delhi-Chicago: 127,000; $459
• Delhi-Los Angeles: 117,000; $473
• Delhi-Newark: 114,000; $542
• Delhi-Washington (including Baltimore): 103,000; $480

Where would you like to see Vistara serve in the US? Let us know in the comments.

Source: https://simpleflying.com/rapid-expansion-indias-vistara-keen-to-add-up-to-12-destinations/