Reportedly Airline industry took a severe beating last year primarily due to high fuel prices. In the Indian context there was a double blow since the Indian Rupee weakened against the US dollar and that resulted in a higher outgo for fuel. Meanwhile among the private airlines to have been affected, Vistara had to incur losses in the financial year ending March 2019, which was double of what the company had reported in 2018.

Image result for Vistara with Jet Airways

Furthermore this is being attributed to the above two causes of higher fuel price and the Rupee-dollar exchange rate. Vistara is a joint venture between Tata Group and singapore Airlines. Perhaps to quantify these, the price of aviation turbine fuel or ATF increased 23% during the last financial year when compared to the previous 12 months. Fuel cost is a key component in the operations of airlines and is fixed irrespective of whether the flights take off with seats full or empty.



Moreover the only saving grace for the airlines is that the current situation is far improved from those days and oil prices are holding steady if not dropping. Hence Vistara has confirmed that the closure of Jet Airways has helped it with some of the premium and business class passengers making a shift towards the airline and the busiest route in india, the delhi-mumbai sector is where Vistara operates 14 flights daily and it will definitely show much better performance this year.


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