Can’t sustain last-minute discounts: Vistara
NEW DELHI: Vistara CEO Phee Teik Yeoh has said that lastminute discounting on air tickets is not “sustainable” and that the phenomenon is peculiar to the Indian market.
“Such pricing cannot continue forever,” said Phee Teik. “Airlines will be aggressive in low season, but they can take it easy in peak season.”
State-owned Air India has been selling seats at Rajdhani AC II-tier rates on key routes in the last four hours before flight departure.
Phee Teik said while pricing and competition were prevalent across the world, “last-minute discount is peculiar to the Indian market”.
“Last-minute fares should not be heavily discounted. In many markets, passengers are rewarded for booking in advance. It’s all about supply and demand. When there are few seats you charge higher and vice versa. So, like train fares, airfare increases as you near departure. I hope this trend won’t persist,” he said.
Phee Teik said the company was working on a “long-term” plan and that starting international operations would require another round of funding. Vistara recently received funds from its promoters Tata Group and Singapore Airlines.
Vistara, which gets its 13th aircraft next month, might look at joint procurement with other group companies, he said. The airline, Phee Teik said, had completed the trial run for on-board WiFi services.