Emphasizing the intricate relationship between airfare and market dynamics, Vistara’s Chief, Vinod Kannan, has expressed hope for an equilibrium where ticket prices strike the right balance for both passengers and airlines. Responding to concerns about erratic increases in air ticket prices, Kannan acknowledged the cyclical nature of airfares. He noted that customer reactions often focus on price hikes, neglecting occasions when fares are lower, as observed in 2023 compared to the previous year.
In an interview with PTI, Kannan assured that measures are in place to prevent irrational pricing, especially during natural calamities or unforeseen events. He emphasized Vistara airline’s commitment to avoiding price-gouging opportunities during challenging times.
Stability Amidst Economic Changes
Kannan highlighted that despite economic shifts, the average ticket prices on popular routes, like Delhi to Mumbai, have remained relatively stable over the past two decades. He attributes this to factors such as increased capacity, the rise of low-cost carriers, and other market
Global Parity in Airfares: A Long-Term Goal
Considering the maturity of Western markets, Kannan speculated on the potential for Indian airfares to align with global levels. He said this will be influenced by India
Vistara’s Merger with Air India: A Catalyst for Growth
Discussing the merger with Air India, Kannan emphasized that it is geared towards growth rather than cost-cutting. He reassured that job security is a priority, with a commitment to offering opportunities within the expanded entity.
With nine years of remarkable growth, Vistara aims for strategic network expansion in the next three to six months. Legal approvals in progress, Kannan anticipates closer cooperation with Air India, focusing on non-competitively sensitive aspects such as operations, knowledge sharing, and structural considerations for the integrated entity.