Singapore Airlines fights with Emirates to catch Indian aviation market

Published on : Thursday, August 8, 2019

Singapore Airlines has just picked a fight with Emirates in a grab for India’s international travellers, and a slice of one of the world’s fastest-growing aviation markets.



The unprofitable Indian venture of Singapore Airlines, Vistara completed its first overseas flight — between New Delhi and Singapore. It’s the start of an uphill battle against Middle East airline giants, led by Emirates and Etihad Airways PJSC, that dominate India’s offshore routes.



For Singapore Air, ambushed all over Southeast Asia by budget airlines, the prize is clear. The numbers of passengers in India will more than triple to 520 million by 2037, the International Air Transport Association says. And of the 63 million people that flew to and from the country last year, two thirds were carried by foreign airlines.



Vistara Airlines will focus on growth in Southeast Asia and the Middle East this year, Chief Executive Officer Leslie Thng told reporters in Singapore after its maiden offshore flight touched down at Changi airport at about 8 a.m. on Wednesday. The company plans to have a fleet of 41 by the end of this year, and increase it to as many as 70 by 2023, Thng said.


Vistara Airlines, 49% owned by Singapore Air and 51% by Indian conglomerate Tata Group, started out in January 2015. India doesn’t allow foreign airlines to fly between local airports, unless they partner with a local company to start a domestic airline.


The carrier operates 30 Airbus SE and Boeing Co. jets and has a local market share of 5%, the smallest among six major players. It also plans to fly to Dubai and Bangkok.


Vistara Airlines is a key element of Singapore Airlines’ multi-hub strategy, and the launch of international operations offers additional opportunities to it, a spokesman for the Southeast Asian carrier said. He declined to comment on competition. A representative for Vistara referred queries to Singapore Airlines, while Emirates declined to comment.


























@economic times

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