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Singapore Airlines-backed Vistara bets on upmarket model in frugal India

Updated : October 30, 2018 06:55 AM IST

India’s domestic airline market, the world’s fastest growing at 20 percent a year, represents an enticing long-term opportunity for Tata and Singapore Airlines. But in the shorter term it has turned into a financial sinkhole - high oil prices and a weaker currency are not being recouped in fare prices, driving carriers into the red.
For Singapore Airlines, the growth in India far outpaces its established markets and Vistara provides a strategic opportunity to build a business in a country of 1.3 billion people and a growing middle class that can now afford to fly.
In India, the government requires an airline to have more than 20 jets before operating international flights. Vistara reached that milestone in June but has been waiting on regulatory approvals before launching into the more lucrative international market.
Singapore Airlines-backed Vistara bets on upmarket model in frugal India
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