According to the latest DGCA data, domestic air traffic grew 70 per cent year-on-year to 89.85 lakh passengers in October.
As the clouds of the pandemic are slowly clearing, Vistara on Sunday said that the scheduled schedule should be postponed for a longer period of time. international flights It is affecting the financial health of most airlines to and from India and also warned that it is too early to conclude that the country’s aviation sector is out of the woods.
The full-service carrier, which began flying to eight international destinations during the pandemic, has taken an “agile” approach amid the dynamic and unpredictable situation in the wake of the coronavirus pandemic as some countries now see rising infections.
Vistara’s nominated CEO Vinod Kannan said that most predictions about the recovery of the aviation industry have turned out to be wrong at this unpredictable time, and it is too early to say that the Indian aviation industry is completely out of the woods.
On the domestic front, air traffic is close to pre-COVID-19 levels and grew by 70% in October compared to the year-ago period.
“The prolonged suspension of scheduled international operations is certainly affecting the financial health of most airlines, adding to the pressure (on revenue),” he said. PTI.
In an email interview, Mr Kannan, who is currently the airline’s chief commercial officer, said that although the administration of vaccines around the world has brought a lot of positivity and hope to the industry, the situation remains dynamic and unpredictable.
With travel restrictions constantly evolving in different parts of the world, “there is still a long way to go in recovery of demand in the international segment”, he said.
Scheduled international air services to and from India are suspended since the end of March 2020 due to the pandemic. India has air bubble arrangements with more than 25 countries for operating foreign flights.
For now, the suspension is till November 30 and there is no clarity on normalization as discussions are underway against the backdrop of a spike in the number of coronavirus cases in some countries.
Earlier this week, Civil Aviation Minister Jyotiraditya Scindia said the “process” with regard to normalization of foreign flight services is being evaluated.
During the pandemic, Vistara started flights to eight international destinations – London Heathrow, Dhaka, Dubai, Doha, Frankfurt, Sharjah, Male and Paris.
Mr. Kannan said, “The momentum we have gained on expanding our international footprint over the period has been beneficial, helping us introduce our product to new markets and restarting scheduled international operations. has strengthened our brand presence to help us prepare for it.” ,
According to him, Vistara is seeing an increase in preference for direct, non-stop flights on medium- and long-haul routes, which accelerates its growth plans in the international market. “Despite the current challenges, we stick to our long-term expansion plans”.
Mr. Kannan, who will take over as CEO from January 1, 2022, pointed out that some international routes as part of travel bubble agreements remain viable to operate special flights as it provides flexibility but on a large scale. with limited opportunities.
However, he did not respond to a recent query by international airlines body IATA, which said that India’s air bubble arrangement is not driven by the pandemic but by a desire to renegotiate its air service agreements.
“We see great potential for long-distance direct flights from India, and therefore, we are continuously expanding our global network under travel bubble agreements with many additions to our network,” Mr. Kannan said.
With regard to starting flights to the US, he said there are a number of requirements and approvals for operations to the US, which “we are currently working on”.
“We aim to maintain the momentum achieved over the past year on international expansion and plan to add 10-12 destinations to our network as soon as possible,” he added.
Without sharing any specific numbers on passenger volume as well as growth in earnings and revenue in the first half of the current fiscal, Mr Kannan said the first few months were extremely difficult.
He added that while the industry had seen a marginal increase in passenger volume, the second COVID-19 wave significantly reduced it with passenger load factors averaging around 50 per cent in April and May 2021.
Further, he added that it is only from June 2021 onwards that we have started seeing a return to demand, due to which the load factor increased to 72.4 per cent in September.
“We have also been able to effectively leverage commercial cargo and charter flights, which have contributed significantly to the bottom line,” Mr. Kannan said.
With the ongoing festive season and year-end holidays approaching, he said Vistara expects passenger traffic to continue to grow and return to normalcy gradually.
According to the latest DGCA data, domestic air traffic grew 70 per cent year-on-year to 89.85 lakh passengers in October.
On expenses, Mr. Kannan said that Vistara has been agile in its approach since inception and has taken several measures to reduce the operating expenses of non-customers while making every effort to conserve cash wherever possible.
That said, the airline continues to take advantage of opportunities such as commercial cargo, charter flights, and offers a number of ancillary services in our effort to generate additional revenue.
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