SIA-backed Vistara bets on upmarket model in frugal India

Though all airlines in India are feeling the pinch - with debt-laden Air India and Jet Airways in such a parlous financial state they have been struggling to pay staff salaries on time - Vistara says its upmarket strategy is starting to bear some fruit. The carrier has narrowed its losses and seen average fares rise this year as customers take to its product offering, including a domestic premium economy class, even though ticket prices at most rivals are falling, Vistara CE Leslie Thng said. “We have seen a steady improvement in terms of demand, in terms of load factor as well as in terms of the fare passengers are willing to pay,” said Thng, a SIA veteran who previously ran its Southeast Asian regional arm, SilkAir. Vistara, which now has 22 Airbus A320 narrowbody jets and a 4% domestic market share, has struggled financially as it scales up. <br/>