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Full service Vistara decides to junk premium class on low income routes

The airline will have an all-economy cabin for Tier B and Tier C cities

Vistara
premium

With ever-increasing cost of operations, airlines like Vistara find it taxing to fly the remoter routes, where business and premium economy cabins have little demand

Arindam Majumder New Delhi
In a significant change of strategy, Vistara has decided to drop business class and premium economy seating from some of its aircraft. The airline, a joint venture of Tata Sons and Singapore Airlines, has a three-class cabin. Since inception, it has tried to differentiate itself as a premium brand, in an Indian market dominated by low-cost carriers (LCCs) where intense competition narrows the space to raise fares.

The change underlines the necessity of a hybrid product for full-service airlines in the Indian market, despite the risk of operational complexity and confusing of customers. Both Air India and now-grounded Jet Airways had