Business Standard

Vistara cancellations lead to surge in spot airfares by up to 38%

The impact on the Bengaluru-Udaipur route is quite significant because only two daily flights operate between the two cities-one by Vistara and the other by IndiGo

Vistara flight plane

Deepak Patel New Delhi

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The spot airfares on major routes, where Vistara cancelled flights on Tuesday, have surged by up to 38 per cent, according to data provided by Cleartrip. The spot airfares for Tuesday were compared with March 5.

Vistara has cancelled 52 flights on routes such as Delhi-Indore, Delhi-Srinagar, Mumbai-Kochi, and Bengaluru-Udaipur as a certain section of pilots went on sick leave, reportedly protesting against the new salary structure that was introduced as part of the airline's merger with Air India.

On the Bengaluru-Udaipur route, the average spot airfare on April 2 was Rs 6,049, compared to Rs 4,368 on March 5, reflecting an increase of approximately 38 per cent. 

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Similarly, on the Delhi-Srinagar route, the average spot airfare on April 2 rose by 30 per cent compared to March 5, according to Cleartrip data.

The impact on the Bengaluru-Udaipur route is significant because only two daily flights operate between the two cities — one by Vistara and the other by IndiGo, according to aviation industry sources.

The airline did not respond to Business Standard's request for a statement on this matter.

According to sources, Vistara cancelled approximately 25 flights on Wednesday. The airline, a 51:49 joint venture between the Tata Group and Singapore Airlines, operates approximately 350 flights daily. Spot airfare refers to the price of a flight ticket purchased within 24 hours before the flight's departure.

Sources said the impact on airfares is expected to diminish over the next few days as the number of flight cancellations reduces and the airline normalises its flight schedule.

As part of the new salary structure, Vistara pilots will receive a fixed salary for 40 hours of flying time instead of the current 70 hours. 

Additionally, they will be compensated for extra flying hours and will earn an additional amount as a reward based on their years of service with the airline.

The Competition and Consumer Commission of Singapore (CCCS) gave its approval to the merger of Vistara and Air India in March 2024. 

The Competition Commission of India (CCI) had approved the merger between the airlines in September 2023.

Vistara is anticipating an operational merger with Air India by mid-2025, in addition to its expectations of receiving legal approvals for it by the middle of the current calendar year, the full-service carrier’s CEO Vinod Kannan said at a press briefing in January this year.

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First Published: Apr 03 2024 | 11:58 PM IST

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