IN­VEST­MENT IN VIS­TARA BY SIN­GA­PORE AIR­LINES

SP's Airbuz - - Newescebnt -

Vis­tara is a joint ven­ture be­tween Tata Sons and SIA, in which the Sin­ga­pore-based car­rier holds 49 per cent. “The part­ner­ship with Vis­tara has proved mu­tu­ally ben­e­fi­cial for both par­ties. It has al­lowed us to get traf­fic from ar­eas where we don’t fly to,” said David Lim, Gen­eral Manager, In­dia, at SIA. Re­cently, the pro­mot­ers in­fused an­other 2 bil­lion into Vis­tara, tak­ing the to­tal to 15 bil­lion. Vis­tara, how­ever, has reg­is­tered losses in FY16 and FY17 due to which the air­line’s net worth is neg­a­tive by 10 bil­lion. Lim high­lighted the im­por­tance of the grow­ing Indian mar­ket for SIA, with the num­ber of out­bound tourists in­creas­ing. Sin­ga­pore gets one of the high­est numbers of tourists from In­dia, which is be­hind China and In­done­sia. The In­dia-Sin­ga­pore out­bound mar­ket grew by 16 per cent in 2017, com­pared with 2016. SIA, how­ever, has not been able to take much ad­van­tage of the growth due to con­straints of bi­lat­eral fly­ing rights. Due to the con­straint, SIA to­gether with sis­ter con­cern, SilkAir, is able to in­crease only 10 flights for the sum­mer sched­ule to 104 flights from 94. The growth will mainly come from sec­ondary cities like Coim­bat­ore, Trivandrum and Vizag, where SIA will in­crease fre­quency. Six of the top eight routes for SIA are to Indian met­ros Ben­galuru, Chennai, Delhi, Hy­der­abad, Kolkata and Mum­bai where it has al­most fully utilised its seat en­ti­tle­ments.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.