Vistara, the renowned airline created through a joint venture between the Tata Group and Singapore Airlines, will end its operations on November 12, 2024. This follows the final approval for the merger with Air India, marking the end of an era for the beloved airline. Singapore Airlines recently announced the completion of all necessary approvals for foreign direct investment (FDI) into Air India, clearing the way for the merger.
The Legacy of Vistara Vistara's story began over 3,595 days ago, and as it prepares to join the ranks of defunct airlines like Air Sahara and Air Deccan, it leaves behind a notable legacy. Unlike its sister venture, AirAsia India, Vistara stood out for its luxury and innovation. Despite facing challenges, it has been a cherished name in aviation, often evoking comparisons to the golden days of airlines such as Kingfisher Airlines.
Milestones and Innovations Pioneering Features: Vistara introduced several firsts in Indian aviation. It was the first airline in India to offer Premium Economy class and to provide a flatbed experience on narrowbody aircraft with its A321neo. The airline also became the first to operate the Boeing 787-9 Dreamliner and the Airbus A321LR in India.
Modern Fleet: In 2018, Vistara placed an order for 56 aircraft, including Boeing Dreamliners and Airbus narrowbody planes. It transitioned to an all-modern fleet, incorporating the Airbus ‘neo’ family for its narrowbody operations. For a brief period, it also operated Boeing 737NG aircraft, previously used by Jet Airways.
International Services: Following the National Civil Aviation Policy of 2016, which relaxed norms for international flights, Vistara launched its international services in August 2019, becoming the first airline to benefit from these policy changes.
Passenger Experience and Operational Challenges Vistara operated over 500,000 flights since its inception until the end of July 2024. It is expected to complete around 30,000 additional flights before its final departure. By the end of July, the airline was close to serving 70 million passengers and is projected to add nearly 5 million more passengers before its closure.
Despite its achievements, Vistara faced several challenges. It had to reconfigure its seating arrangements multiple times, adjusting its aircraft from a luxurious setup to a more practical one to better fit market demands. This included reducing its Business Class and Premium Economy seats to accommodate more Economy seats, reflecting a need to adjust initial expectations.
Financially, Vistara struggled to achieve profitability. Although it recorded operational profits in one quarter, it did not achieve sustained profitability over its nearly decade-long existence. With the merger, Air India will continue under the same parent company but with different ownership structures.
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