New Delhi:

Vistara has offered voluntary retirement as well as voluntary separation schemes for its non-flying staff, ahead of the full service carrier’s merger with Air India, according to officials.

A joint venture between the Tatas and Singapore Airlines, Vistara has around more than 6,500 employees, including permanent and contract staff.

The Voluntary Retirement Scheme (VRS) and Voluntary Separation Scheme (VSS) have been offered for the non-flying permanent employees. Eligible staff can apply for the schemes till August 23, they said.

While VRS is for those who have completed five years of service, VSS is for the staff who are yet to complete five-year service at the airline.

The schemes are similar to those offered by the Tata Group-owned Air India earlier this month.

The schemes are not be applicable for pilots, cabin crew and those holding licences for carrying out their duties.

There was no official comment from Vistara on the schemes. The airline started flying in 2015.

Earlier this month, sources had said about 600 non-flying staff of Air India and Vistara are likely to be impacted by the two airlines’ mega-merger, and efforts will be made to provide job opportunities to the affected employees within Air India group and Tata companies.

Tata Group-owned loss-making full-service carriers — Air India and Vistara — together have more than 23,000 employees.

Meanwhile, the fitment exercise — which involves the evaluation of the roles and responsibilities of staff of both airlines — in the run-up to the merger has been going on for the past few months. The exercise takes into account an individual’s prior experience, performance and other factors.

On May 12, Air India CEO and MD Campbell Wilson, along with Vistara CEO Vinod Kannan, held a one-and-a-half-hour town hall meeting with employees of both carriers about the proposed merger.

At that time, Wilson and Kannan also assured that the fitment, or assignment, of existing employees into the new structure was being done based on merit and competency.

The merger, which will create one of the biggest airline groups, was announced in November 2022. Once the deal is complete, Singapore Airlines will have a 25.1 per cent stake in Air India. Vistara is a joint venture between Singapore Airlines and the Tata Group.

In June, the National Company Law Tribunal (NCLT) cleared the merger, and in March, Singapore’s competition regulator CCCS gave a conditional nod for the proposed deal.

Earlier in September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Srinagar:

A Vistara flight bound for Srinagar, carrying 177 passengers and one infant received a bomb threat on Friday, prompting swift action by the airline and security forces.

Flight no-UK-611, which departed from Delhi, landed safely at Srinagar Airport at approximately 12:10 AM.

Following standard protocol for such threats, the aircraft was immediately directed to an isolation bay upon landing.

“All passengers were safely de-boarded at the isolation bay. Currently, the aircraft is undergoing a thorough security check by the relevant authorities to ensure the safety of all concerned,” an airport official told ANI.

Despite the disruption, all passengers are reported to be safe, and the situation is being handled with the utmost priority to ensure their security.

“We confirm there was a security concern on Vistara flight UK 611 operating from Delhi to Srinagar on 31 May 2024 that was brought to our staff’s attention while on board. Following the protocol, we immediately informed the relevant authorities, and the aircraft was taken to the isolation bay after safely landing at the Srinagar International Airport where all customers were disembarked,” said Vistara spokesperson.

“We fully cooperated with the concerned authorities to clear the mandatory security checks. All the necessary checks have been conducted and the aircraft has been cleared to resume operations. At Vistara, safety and security of our customers, crew and aircraft is of utmost importance to us,” the spokesperson underscored.

Authorities are investigating the source of the bomb threat and taking all necessary measures to ensure the continued safety of air travel.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Watch | The troubles behind Vistara’s massive flight cancellations I Explained

Starting March 30, Vistara began to see scores of flight cancellations flooding social media with passenger complaints. Over the next four or five days, the airline saw over 150 flights cancelled and more than 200 flights delayed for more than two hours.

The airline attributed the cancellations to crew unavailability. But in order to cope with the situation and to avoid any further inconvenience to passengers the airline decided to drop a total of 1,000 flights in the month of April, or roughly 30 flights a day. This is about 10% of the airline’s total number of daily flights.

Why were there so many cancellations? Why was there deep unrest among pilots?

Read:  Why are Vistara flights being cancelled? | Explained 

Script and presentation: Jagriti Chandra

Video: Dipesh

Production: Shikha Kumari

Representational file image.
| Photo Credit: AP

The global airline industry is facing a summer squeeze, with travel demand expected to surpass pre-pandemic levels while aircraft deliveries drop sharply due to production problems at Boeing and Airbus.

Air carriers are spending billions on repairs to keep flying older, less fuel-efficient jets, and paying a premium to secure aircraft from lessors. But some carriers are still being forced to trim their schedules to cope with the lack of available planes. At the same time, the number of travelers globally is set to hit historic levels, with 4.7 billion people expected to travel in 2024 compared with 4.5 billion in 2019.

“We can expect a strong performance from airlines throughout the summer with some particularly high airfare,” said John Grant, senior analyst at travel data firm OAG.

Last December, the International Air Transport Association (IATA) had predicted a 9% annual growth in global airline capacity this year. That estimate looks optimistic following Boeing’s safety crisis.

Passenger carriers will receive 19% fewer aircraft this year than they expected because of production issues at Boeing and Airbus, said Martha Neubauer, senior associate at AeroDynamic Advisory.

U.S. carriers will receive 32% fewer aircraft than planned a year ago because several airlines depend on Boeing’s 737 MAX planes, Neubauer said. Boeing’s production has been curbed after a January mid-air panel blowout.

Boeing is reeling from a sprawling crisis that erupted after the Jan. 5 Alaska Airlines blowout. Regulators have put a cap on production of the 737 MAX, but the company is not hitting even that level.

As many as 650 Airbus A320neo jets could be grounded in the first half of 2024 for inspections to deal with a flaw with RTX Corp’s Pratt & Whitney engines, RTX said last year.

In Europe, low-cost airline Ryanair has cut some routes. In the United States, United and Southwest have cut back flying and adjusted hiring and staffing plans.

Leasing market booms

Analysts expect capacity at most U.S. carriers in the second quarter to grow at a slower pace than a year ago. Airlines will update their growth plans and explain how they will offset capacity constraints when they report quarterly results, starting on Wednesday with Delta Air Lines.

Due to the shortage of new planes, the aircraft leasing market is booming. Data from Cirium Ascend Consultancy shows that lease rates for new Airbus A320-200neo and Boeing 737-8 MAX aircraft have hit $400,000 per month, the highest since mid-2008.

Airlines are spending 30% more on aircraft leases than before the pandemic, said John Heimlich, chief economist at Airlines for America (A4A) that represents major U.S. carriers.

They are also holding on to jets that are past their useful economic lives and require heavy maintenance that now takes several months, Heimlich said. Repair costs at United, Delta and American were up 40% last year from 2019.

Increased leasing, repair and labor costs will bite in to profit despite the high demand, Heimlich said. U.S. passenger airlines posted a pretax margin of 4.5% last year, with the bulk of contribution coming from Delta and United.

Fewer Americans are planning to travel on a plane this summer compared with a year ago due to high inflation, a survey by travel website the Vacationer showed. Airline fares are down year-on-year, but have been rising month-on-month.

Air India expects the first A350-900 aircraft to arrive in India by the end of this year.
| Photo Credit: Reuters

Air India on September 29 said it has completed the acquisition of its first A350-900 aircraft by way of a finance lease transaction with HSBC through the GIFT City.

This is also the first wide body aircraft to be leased through the GIFT City, the country’s first International Financial Services Centre (IFSC).

In a release, the airline said the transaction was facilitated by its wholly-owned subsidiary AI Fleet Services Limited (AIFS) and is also the first financing transaction from the orders for 470 aircraft that were made earlier this year.

Tata Group-owned Air India, which has embarked on an ambitious transformation plan, expects the first A350-900 aircraft to arrive in India by the end of this year.

According to the release, the airline has successfully acquired India’s first Airbus A350-900 aircraft through a finance lease transaction with HSBC.

“This landmark transaction marks the beginning of our aircraft leasing business from GIFT IFSC, as AIFS will be the primary Air India Group entity for wide body aircraft financing, playing a pivotal role in the future aircraft financing strategy for us and our subsidiaries,” Air India’s Chief Commercial & Transformation Officer Nipun Aggarwal said.

Watch | How Air India came back to the Tatas

International Financial Services Centres Authority (IFSCA) executive director Dipesh Shah said it has been working with the stakeholders to develop regulatory enablers for aircraft leasing and financing.

“The steps taken by Air India by establishing a finance company for the purpose of aircraft leasing and financing at IFSC will go a long way in developing IFSC as a preferred destination for aircraft leasing and financing in India as well as globally,” he added.

The airline has ordered six A350-900 planes and five of them are scheduled for delivery through March 2024. Apart from these, the airline’s firm orders for 470 new aircraft include 34 A350-1000s, 20 Boeing 787 Dreamliners, 10 Boeing 777Xs, 140 A320 neos, 70 A321 neos and 190 Boeing 737MAXs.

Air India signed purchase agreements to acquire these aircraft with Airbus and Boeing in June this year. Currently, Air India has a fleet of 116 planes, including 49 wide body aircraft. The total includes 27 B787-8s, 14 B777-300s, 8 B777-200LRs, 14 A319s, 36 A320 neos, 13 A321 ceos and 4 A321 neos.

Meanwhile, Tata Group is in the process of consolidating its airline business as part of which AIX Connect is getting merged with Air India Express and Vistara will be merged with Air India. Vistara is a joint venture between Tatas and Singapore Airlines, which holds a 49% stake in the carrier.

Vistara, India’s leading private airline, will start Kathmandu-Delhi-Hong Kong two-way flight service from November 1.

Vistara has added Hong Kong to its global flight network from November 1, according to a press release issued by the airline.

“The airline will deploy A320 narrow-body aircraft for this route, and passengers can conveniently book tickets through mobile apps, websites, and travel agencies,” the release said.

Vistara has been flying between Kathmandu and Delhi since February 13.

“Vistara is scheduled to start Kathmandu-Delhi-Hong Kong two-way flight from November 1,” Prasanna Adhikari, executive officer of the airline in Nepal, told PTI.

“This air service will be beneficial for travellers who want to travel from Kathmandu to Hong Kong via Delhi and Hong Kong to Kathmandu via Delhi,” according to Adhikari.

“The main objective of Vistara is to provide safe and comfortable air service to the passengers,” he added.

From November 1 onward, there will be daily flights between Delhi and Hong Kong, according to Adhikari.

A joint venture between Tata Sons and Singapore Airlines, Vistara currently has a fleet of 61 aircraft, including 46 Airbus A320neo, 10 Airbus A321 and 5 Boeing 787-9 Dreamliner. It has been flying regularly to 30 different destinations in the world.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Full service carrier Vistara will start direct flights between the national capital and Hong Kong from October 29.

In a statement on Friday, the airline said it will operate A321 neo aircraft featuring a three-class configuration on the route.

“With the addition of Hong Kong, we are now able to offer our customers direct connectivity to and from three of the world’s top financial centres, the others being London and Singapore,” Vistara CEO Vinod Kannan said.

A joint venture between Tata Sons and Singapore Airlines, Vistara currently has a fleet of 61 aircraft, including 46 Airbus A320neo, 10 Airbus A321 and 5 Boeing 787-9 Dreamliner.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)