New Delhi: Airline company Vistara Chief Executive Officer (CEO) Leslie Theng has said that with the gradual return of demand, the airline will increase the number of daily flights from 80 to 100 by the end of the month. He also said that despite the Kovid-19 crisis, the employees have not been laid off and the salary cut will be reviewed in January. The CEO said that Vistara, along with other airlines, is in talks with the government to resolve the aviation industry problems affected by the Kovid-19 epidemic. Also Read – Lockdown in Chhattisgarh: Due to transition of Kovid-19, Chhattisgarh will have lockdown, Raipur Containment Zone
Before the corona virus epidemic, Vistara was operating more than 200 flights to 34 locations every day. Vistara CEO Theng told PTI that the airline is currently operating 80 daily flights, which will be increased to 100 by the end of the month. He said in an interview via e-mail that in the first few weeks of the start of domestic air travel, most of the suppressed demand has been seen. Also Read – PM Modi will hold talks with the Chief Ministers of the states on September 23 on the situation in Corona! Will the lockdown happen again?
Domestic flight service was suspended from 25 March to 24 May due to the ‘lockdown’ imposed to control the epidemic. At the same time, international flights are still pending. Some international flights are being operated under bilateral agreements (Air Bubble Agreement). Apart from this, with the approval of the aviation regulator DGCA, some flights are operating in the Indian sky. Also Read – 97 people lost their lives traveling in labor station trains: Government’s reply in Parliament
He said, “However the demand is still less than the Kovid pre-level. But it is constantly improving, which is an encouraging trend. Traffic is directional on some routes but we are seeing that demand is coming back on track, especially in big metros. “The airline has already started operating special flights between Delhi / Mumbai and Dubai and Delhi and London. “We are looking at starting similar flights to Paris and Frankfurt,” said Theng. He said “various reasons such as restrictions on capacity utilization, low demand on most routes and closing of borders.” Given the short-term, the situation definitely affects the capacity expansion. However, returning trust in customers gives us hope. “
The global aviation industry, including airport operators, is facing challenges due to lack of demand due to the epidemic and the ‘lockdown’ imposed for its prevention. Some international airlines have gone bankrupt due to restrictions on flights and economic constraints, while many are in poor financial condition. Indian aviation companies are also in financial crisis. Due to this, they have cut and retrench salary. Earlier this month, Civil Aviation Minister Hardeep Singh Puri said that Indian aviation companies have demanded an interest-free $ 1.5 billion loan facility.
“Vistara, along with other airlines, is in talks with the government on a solution for the aviation industry affected by the Kovid-19 pandemic and we are expecting favorable results,” said Theng. As far as Vistara is concerned, we have sufficient funds. Our parent companies are committed to Vistara. He is confident of the growth strategy. “Vistara is a joint venture between Tata and Singapore Airlines.
According to the report, Vistara’s pre-tax loss increased to Rs 1,814 crore in 2019-20 from Rs 831 crore in 2018-19. Vistara has taken steps to overcome the challenges posed by the Kovid-19 crisis. He said, “To overcome this difficult time, we are taking steps to cut down on operating expenses, bypassing customer services and taking all possible measures to save cash. These measures include renegotiation of various contracts with partners, suppliers and leasing companies.
In response to another question, the CEO of Vistara said that despite the crisis we have not retrenched the number of 4,000 employees. Will review about salary cuts in January. He said, “There has been no cut in jobs due to Corona virus epidemic. The number of employees remains around 4,000 at the previous level. “Theng said that the salary cuts of employees will be reviewed in January next year. He said, “With the intention of securing all jobs in Vistara, we had taken a difficult decision to cut the salary to reduce the cost at the level of the employees.” This deduction is for December 2020 and will be reviewed in January 2021. “