As Vistara scales down operations, fares rise by up to 25% on major routes

While Vistara has not specified the duration of the capacity cut, it will likely remain in effect until at least the end of April, keeping fares high on affected routes during this period

Vistara's announcement of scaling down operations by reducing 25-30 flights a day, roughly 10 per cent of its operating capacity, has triggered a 20-25 per cent jump in already high airfares across major routes, The Indian Express reported. 

Just ahead of the peak summer travel season, travel industry insiders reported a surge of approximately 20-25 per cent in fares across key routes such as Delhi-Goa, Delhi-Kochi, Delhi-Jammu, and Delhi-Srinagar, the national-daily said.

On average, the airline conducts approximately 350 flights daily. However, since April 1, Vistara has been forced to cancel more than 150 flights cumulatively due to pilots unexpectedly reporting sick at the end of March. Given the ongoing demand-supply mismatch leading to higher airfares, Vistara's move has exacerbated pressure, particularly on routes affected by cancellations.

While Vistara has not specified the duration of the capacity cut, indications suggest it will likely remain in effect until at least the end of April, keeping fares high on affected routes during this period, the report said.

Notably, in the Indian airlines' summer schedule for 2024, Vistara showed significant growth in approved domestic flights compared to the previous winter schedule and last year's summer schedule.

This year's summer schedule, spanning March 31 to October 26, featured 2,324 weekly domestic departures by Vistara, marking a 25.2 per cent increase over last year's summer schedule and 22.2 per cent over the recently concluded winter schedule. 

Overall, the current summer schedule for all Indian carriers combined exhibits a 6 per cent year-on-year increase in domestic departures and a 2.3 per cent sequential increase, the Indian Express reported.

Facing significant disruptions and numerous flight cancellations and delays last week amid several pilots taking sick leaves as part of a protest over a new pay structure, concerns have also arisen about Vistara's impending merger with Air India.

The carrier has tried to resolve the issues. As part of mitigation efforts, the Tata Group airline last week announced a reduction in operational capacity, primarily in its domestic network, to provide "much-needed resilience and buffer" in its crew rosters.

Vistara also announced a new salary structure for its pilots. Under this arrangement, pilots will receive a fixed salary for 40 hours of flying time instead of the current 70 hours. Additionally, they will receive compensation for extra flying hours and a reward based on their years of service with the airline.

This new salary structure was offered as Vistara, which is a 51:49 joint venture of the Tata Group and Singapore Airlines, is in the process of being merged into Air India, which is wholly owned by the Tata Group.