Vistara, an Indian airline, has been facing operational disruptions leading to over 150 cancellations and 200 delays exceeding two hours between March 31 and April 4. This has resulted in nearly 1,000 flight cancellations for the month. The Director General of Civil Aviation has ordered the airline to file daily reports on these disruptions, while the Ministry of Civil Aviation is monitoring the situation closely. Vistara has scaled back operations by 25-30 daily flights until May 24, which account for about 10% of its capacity. The CEO attributed the issues to crew unavailability and other factors like ATC delays and maintenance activities.
The pilots at Vistara have been expressing discontent over a new pay structure implemented as part of the impending merger with Air India. This new structure significantly reduces guaranteed flying hours for First Officers, leading to pay cuts. Pilots are also unhappy with unpredictable rosters, frequent changes with short notice, delays in training programs for promotions, and the potential impact of the merger on their seniority and career advancement. This discontent has led to collective actions such as mass sick leaves and refusal to cooperate with unplanned flights. However, Vistara stated that 98% of pilots have agreed to the new salary terms.
The airline is taking steps to address the operational disruptions, including deploying larger aircraft, offering refunds and compensation to affected passengers, and working on restoring regular flight schedules. Vistara aims to stabilize its operations by addressing crew shortages and optimizing crew planning. Air India plans to send narrow-body aircraft pilots to Vistara to operate A320 planes on a deputation basis to help address the issues. The situation has already shown improvement, with on-time performance increasing to over 80% for the last two days. Vistara is hopeful of stabilizing operations for the entire month of April.
The overall airline sector performance, including Vistara’s struggles, is reflected in the Airlines Sector Stock Index Year-to-Date performance. The index includes publicly traded airline companies globally, covering network carriers, low-cost carriers, and related companies. Vistara’s issues are affecting the overall index, highlighting the challenges faced by the aviation industry in India. The Skift Travel 200, which combines the financial performance of nearly 200 travel companies, provides insight into the financial health of the airlines sector. The methodology behind the index offers a comprehensive view of how various factors impact the performance of airlines and other travel-related companies.
In conclusion, Vistara’s operational disruptions, particularly due to crew unavailability and pilot discontent, have raised concerns about the airline’s performance and its impact on the overall aviation sector in India. The airline is taking steps to address the issues and stabilize its operations, but the underlying challenges related to the merger with Air India and pilot dissatisfaction remain unresolved. The airline’s struggles are reflected in the broader airline sector performance, highlighting the need for proactive measures to ensure the smooth functioning of the aviation industry in the country.
