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India's 5/20 rule to go, Vistara to be able to commence Intl Expansion

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  • India's 5/20 rule to go, Vistara to be able to commence Intl Expansion

    Latest news out of India is that the Union Cabinet has approved the new Civil Aviation policy, with the biggest winners set to be new entrants Vistara and AirAsia India!

    'Primary among announcements was easing of a rule that required Indian carriers to complete 5 years of domestic operations and have a fleet of 20 planes to be considered for international operations. Now an airline has to scale its fleet up to 20 planes or deploy 20% of capacity on domestic operations, whichever is higher, to qualify for overseas flying.'

    'We would have preferred of course, that the rule be completely abolished to ensure Indian aviation achieves its full potential," said Vistara CEO Phee Teik Yeoh, while adding that it is "very encouraging to see that the government has established a policy which promotes the overall growth of the country."

    In a recent interview, Singapore Airlines CEO Goh Choon Phong had said that "ideally, there shouldn't be a limitation," "If you look at a set up outside India, an airline with two aircraft can fly to India. So I see little reason, especially if you are satisfied with the way it has set up safety. Once all that is satisfied, it shouldn't be treated worse than an external airline. Objectively, there should be no requirement at all," he added.'


    With this new announcement, Vistara, which already has an existing fleet and order book totally 20 aircraft, can Kickstart expansion in the lucrative Indian international market! The biggest winner IMO seems to be the SIA group which has maxed out its bilateral seat capacities to India whereas the Indian carriers have barely used theirs to Singapore! Now SIA can expand on the Singapore-India market using both bilaterals. Lots of potential for Vistara to expand Westwards as well to Europe and US, markets the ME3 have gobbled up with poor service and routes by Air India and Jet Airways!

    Exciting times ahead!

  • #2
    Very exciting, truly! If Vistara does fly here, the highest chance is that they'll fly from Goa. Every other destination is covered by the other SQ airlines.

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    • #3
      Originally posted by shikhargpt View Post
      Very exciting, truly! If Vistara does fly here, the highest chance is that they'll fly from Goa. Every other destination is covered by the other SQ airlines.
      That would be nice and will save substantial time. Flying through DEL or BOM has been a pain, not that I fly to Goa frequently.

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      • #4
        GOI-SIN is certainly an option, but I doubt the demand is there for an FSC to fly non-stop, even if it's Vistara with its economy heavy config! Other routes which SIA group has lobbied the Indian government to open up for them like Pune and Madurai and have been denied seem to have more potential! Exciting expansion for Vistara in the future, especially seeing how much potential the Indian market has.

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        • #5
          I'm hoping some of the 30 787-10 on order by SQ will end up with Vistara

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          • #6
            I hope some of the retiring A330s from SQ will go to Vistara and that Vistara will be able to launch Europe at the same time.

            Of course DEL-HKG is a lucrative sector that Vistara should be looking into as well.

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            • #7
              Originally posted by shikhargpt View Post
              Very exciting, truly! If Vistara does fly here, the highest chance is that they'll fly from Goa. Every other destination is covered by the other SQ airlines.
              Somewhat Goa is not as popular from us in the East as it is in Europe. But it might work.

              But I think they will do better serving BOM-MLE or DEL-MLE. so near yet not connected. It's getting popular for Indian weddings and these metros have plenty of wealth.

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              • #8
                Vistara to launch international ops with flights from Delhi to Colombo and Phuket

                https://www.financialexpress.com/inf...lombo/1295710/

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