MC Interview |Vistara will look to add pilots by June end to comply with new FDTL norm: CEO Vinod Kannan

Vinod Kannan - CEO- Vistara

Full-service carrier Vistara will look to add a ‘significant’ number of pilots in the next six months to comply with the new Flight Duty Time Limitations (FDTL) norm the Indian government has announced, so that it does not have to reduce its current domestic and international network, CEO Vinod Kannan told Moneycontrol in an interview.

"So currently, my pilot strength … is between 800 to 900. So, you'll have to top that up by 15-20 percent. But … the FDTL was out just a week ago, so the teams are running various scenarios to see what the impact is,” Kannan told Moneycontrol on the sidelines of Wing India 2024 in Hyderabad.

He added that Vistara will be less impacted by the new FDTL norms because it is not a low-cost carrier and does not fly on as many daily routes as other airlines.

"We don't operate so many flights in the midnight hours or the early morning. We do have a few but not as many perhaps as a low-cost airline," Kannan said.

"It (the number of pilots to be added) is very dependent on the network you have. If you don't have as many flights in the so-called early morning hours, your impact might be less. So, those are the numbers we are working out. I don't have the exact figures here," Kannan said.

He added that Vistara expects to secure all the necessary legal approvals for its proposed merger with Air India by the first half of 2024.

The merger, initially announced in November 2022 as part of the Tata Group's strategic plan, is due to be completed by mid-2025. A key element of the merger involves Singapore Airlines acquiring a 25.1 percent stake in Air India.

"We expect things to take at least another 12 months or so because you can't transfer everything immediately, you have to do it in stages," Kannan said.

Kannan added that as part of the Vistara-Air India merger, the two airlines are in the process of ensuring that Vistara's cabin crew and service standards, which have been Vistara's unique selling point and critical in making the airline a customer favorite, will be brought on board Air India as well.

"We have competition approvals, we have our people who can now discuss and share knowledge and experience. And the intention very much is to bring Air India up to the same levels as Vistara," Kannan said.

He also said that Vistara is pushing for knowledge sharing between the two airlines to be fast-tracked.

"We've burnt our fingers, we've done things the hard way, and it's only fair that we transfer that knowledge since the shareholders are the same," Kannan said.

He added that in the short to medium term knowledge transfer between the two airlines will be a bit tough, “because any integration is complicated”.
"But I think the end state is very clear. And I think both (sets of) shareholders, myself, Campbell (Wilson, Air India CEO), we’re all on the same page that Air India should and will get to that level, if not better," Kannan said.

He added that the merger of Air India and Vistara is essential to enjoy the benefits of scale, which the shareholders of both airlines are looking forward to in the coming years.

"If you have separate AOCs or separate airline registrations, you have to have a separate machinery to make sure that it works. You need to have post holders, you need to have specific safety apparatus, and you need to have specific operational apparatus, which is a lot more efficient if you combine everything," Kannan said.

He added that the two airlines are not being merged to cut costs but rather to grow together as a brand. “If anything, costs are going to go up 3x because the number of aircraft is going to go up that much. So, there is not going to be a dearth of opportunity in the bigger scale of things,” Kannan  said.

Vistara, which currently operates six Boeing 787 Dreamliners, aims to add another by March, along with two new A320 NEOs, taking its fleet size to 70, Kannan said.

This expansion aligns with the airline's commitment to grow both domestically and internationally, having added six new destinations in the last calendar year, including Bali and Hong Kong, he added.

While financial performance in the last fiscal quarter was strong, the airline faced challenges stemming from the weaker aviation sector between July and October.

The CEO remains optimistic, citing hopes for a positive turnaround in the coming year, despite concerns related to ATF costs and supply chain disruptions.

Highlighting the airline's commitment to safety, Kannan, emphasised Vistara's strength in having a robust team of CAT III pilots, ensuring their regular rostering. He reassured the public that all Vistara aircraft are airworthy.

"July to October was weaker for the sector, more of the impact was due to ATF... We hope next year will be much bigger and more positive. We are confident the current demand will continue in both domestic and international markets," Kannan said.

Vistara also highlighted recent passenger-centric initiatives such as live TV and onboard Wi-Fi, which have garnered positive feedback. The Mumbai hub, introduced as a second operational base, is witnessing increased demand compared to the Delhi hub.

Speaking of Club Vistara members, Vistara said there would be no deleverage or discontinuation of existing points, with plans to enhance offerings. The airline anticipates completing its order book this year.