Tata to enter domestic skies with airline Vistara

The new full-service airline will mark the re-entry of the Tata Group in the airline business after over six decades ushering in a heightened competition in the domestic aviation market.

The group holds 30 percent stake in the domestic arm of the Malaysian budget airline AirAsia India.

The two joint venture partners had made attempts to enter the domestic skies earlier too failed. They had applied to the Directorate General of Civil Aviation (DGCA) for the flying permit in April, 2014 but could get it only late last year after a delay of almost nine months, sources said.

The Tata Group had announced in September last year the formation of a 51:49 JV with Singapore Airlines to launch a full-service carrier in the country.

Vistara now has two leased A320s and will operate 148-seater Airbus A320-200 with 16 seats in business class, 36 in premium economy and 96 in economy on these routes.

Reports said the airline will operate flights from its Delhi base to Goa, Mumbai, Bengaluru, Ahmedabad, Hyderabad, Chandigarh, Srinagar, Jammu and Patna in the first year.

It also has plans to operate 87 flights in the first year with five leased Airbus A-320s, and then scale it up to 301 flights by the fourth year with a fleet of A320s.