Singapore Air’s Indian unit resorts to free seats to lure fliers

NEW DELHI (Aug 17): Singapore Airlines ( Financial Dashboard)’ premium Indian carrier Vistara has resorted to free tickets as intense competition and low fares add to the task of wooing passengers.

Vistara, jointly owned by Singapore Airlines and Tata Sons, filled about 59% of seats on average in the first half of 2015, government data show. That’s the least of eight major passenger carriers operating in Asia’s third-largest economy. SpiceJet, which last year offered base fares as low as 1 rupee (2.2 cents), filled more than 87%.

Vistara on Aug 12 offered a free premium economy class ticket -- a tier it pioneered in the domestic Indian market -- with every business class ticket purchased. Vistara didn’t comment on whether the move is aimed at filling more seats.

Given Vistara’s three-class configuration of business, premium economy and economy, “it’s too simplistic to look at the load factors relative to airlines with a single class, high density configuration of 180 plus seats,” Chief Commercial Officer Giam Ming Toh said in e-mailed responses to questions.

Indian companies are already adding Vistara’s premium economy as an option in their employee travel policies, he said. Its load factor rose to 71% in May from 53% in March, he said, adding the airline’s fleet will expand to nine from six in the next three months.