To connect regional airports with smaller planes similar to the business model of some US airlines
Vistara, the airline jointly owned by the Tatas and Singapore Airlines, is mulling using smaller aircraft to connect regional airports with its metro hubs, similar to the business model of some airlines in the US and Europe.
Sanjiv Kapoor, chief strategy and commercial officer, Vistara said the airline in future may either purchase or lease smaller aircraft like of about 70-odd seater for connecting regional thin-density airport and connect the passengers to their hubs. From the hub, the passengers can be flown further to other destinations, including the international ones. Asked if the move would dilute the premium positioning, Kapoor, who in his earlier job at SpiceJet along with promoter Ajay Singh helped the airline turn around, said, " In order to avoid the confusion, the product differentiation has to be done. For example, we may give regional aircraft the name -- Vistara Express. So people may know the difference and what to expect of each of these brands," he said.
On being probed whether Vistara is in talks with any airline, aircraft manufacturer or lessor, Kapoor said, "So far we are not in talks with anyone on this as at present it's just an idea." In the US, most of the major airlines sub-contract short and medium-haul routes to regional airlines, which connect low density smaller cities with the larger ones.
The major airlines typically brand the regional partner under its own name apart from selling its ticket by way of code-sharing agreements. Additionally, the flight schedules and other important activities like check-in and baggage handling is also synced as per the needs of the major airline. According to a research paper, 'The role of Regional Airlines in the US Airline Industry' published in ResearchGate by Silke Januszewski Forbes from University of California and Mara Lederman Rotman School of Management, University of Toronto in 2015, though the trend of regional airline connecting the hubs in the US started in the pre World-War II era, it was actually after the war that it really caught up with escalation in demand for air travel.
On plans to start international routes, Kapoor said so far there is no deadline and the management is still studying and reviewing the plans. "However, once we start flying international, then it has to be neighbouring and Saarc countries, considering the fact that the A320 aircraft fleet which we have can be used for flying for about 3.5 hours distance. Later on, we can think of long haul and suitable planes for it."
Vistara, a full-service airline, has 11 A320 aircraft.
a_shahakar@dnaindia.net
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