Vistara cuts fare to counter rivals like Jet Airways and Air India

MUMBAI: Vistara, Tata Sons’ joint venture carrier with Singapore Airlines, has brought ticket price levels lower to lessen the gaps with rivals — in some cases even offering cheaper tickets than competitors — after price-sensitive Indian customers opted for discounts offered by Jet Airways and Air India.

The fares are almost half of what they were last week, data from travel portals and its own website showed.

For instance, a Delhi-Mumbai ticket price booked for a flight a month in advance is Rs 5,481, compared to about Rs 10,700 last week. The price is lower than most rivals, including IndiGo.

The airline, however, hasn’t announced any discounts or offers for the lean season starting end January and continuing till April.

“They are now at the levels of the others, barring some instances. Vistara isn’t exactly undercutting anyone yet, nor is it playing the fare war,” said an executive from Makemytrip, India’s biggest online travel portal by sales. The airline is also at par or lower than rivals on spot fares.

Makemytrip shows price for a Vistara ticket for a Mumbai-Delhi flight for January 23 is at slightly over Rs 9,398, just Rs 200 higher than what the lowest fare offered by budget carrier GoAir.
“Keeping spot fares low shows lagging demand. The airline possibly has last minute unsold inventory,” said the executive of a low fare carrier. A Vistara spokesperson, when contacted, maintained its stand of “maintaining a price discipline”.

ET had reported on Monday that India’s travel agents were selling a combined volume of 300 Vistara tickets every day, only a fifth of its daily inventory on offer.

It had cited travel company executives and experts saying the airline has to have a more relevant pricing strategy in order to sell.

What has hurt Vistara’s sales recently is also a 50% discount given by Air India for travel up to end of April. Other airlines followed the state-run carrier to a tee. Vistara currently operates 10 flights with return legs, between Delhi, Mumbai and Ahmedabad.