Aviation industry to reach pre-COVID level by April 2021, says senior Vistara official

Vistara, which is presently operating at 55 percent capacity, expects the domestic aviation industry to completely recover from the hit in occupancy levels from the COVID-19 pandemic by April 2021.

"At present we are doing about 115 to 120 flights a day, versus 120 flights pre-COVID-19. We should hit 60 percent capacity by end of the year," the airline's Chief Commercial Officer Vinod Kannan said on November 4.

While presenting the airline's second customer survey, which said customers are more inclined to travel than they were in July when the first part was released,  Kannan noted that it will be important to track how the novel coronavirus behaved through the festival season.

Vistara's outlook is similar to the one given by IndiGo, which had talked about the industry reaching pre-pandemic levels by the first quarter of the next year. Since domestic flights resumed in May, the government has put a cap on capacity utilisation, which at present stands at 60 percent. The government also put a restriction on the fares that airlines can charge.

Kannan, however, pushed for a "total free market" when it comes to deciding fares. "It is the most ideal when it is a total free market, and the customers can decide," he said. Recently, the government extended the fare cap, which was to end on November 24, till February 24, 2021.

The airline currently has loads of 60 to 70 percent, down from 80-90 percent before the pandemic hit.

Fleet expansion plan

Kannan accepted that the pandemic has impacted Vistara's fleet expansion plans. While reiterating that no orders have been cancelled, the chief marketing officer added that the airline currently had two Boeing 787 aircraft in its fleet. The original plan was to have four by this time.

Vistara will rejig some of its delivery schedule, which has been prompted also by the adjustments made by the manufacturer in its production plan.

The airline at present has a fleet of 43 aircraft that include Airbus A320s and Boeing 787-9. The carrier may end the year with a fleet of 47 to 48 aircraft, against its earlier estimate of 53.

London flights

Vistara, which is ramping up its London service from November 21, said the present lockdown in the British capital has impacted its operations. Kannan said the airline had cancelled seven flights planned in November.

From November 21, Vistara will increase its weekly frequency from the current four to five flights. This will further rise to seven flights from December 1.