Singapore Airlines takes fight to Emirates’ backyard to grab Indian flyers

The number of passengers in India will more than triple to 520 million by 2037, according to the International Air Transport Association

Vistara, 49 per cent owned by Singapore Air and 51 per cent by Indian conglomerate Tata Group, started out in January 2015

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An Airbus A380 of Singapore Airlines. Photo: Reuters

Published: 1:31pm, 7 Aug 2019Updated: 4:39pm, 7 Aug 2019

Singapore Airlines just picked a fight with Emirates in a grab for India’s international travellers, and a slice of one the world’s fastest-growing aviation markets.

Singapore Airlines’ unprofitable Indian venture, Vistara, launched its first overseas service between New Delhi and Singapore on Tuesday. It is the start of an uphill battle against Middle East airline giants, led by Emirates and Etihad Airways, which dominate India’s offshore routes.

For Singapore Air, ambushed all over Southeast Asia by budget airlines, the prize is clear. The number of passengers in India will more than triple to 520 million by 2037, according to the International Air Transport Association. And of the 63 million people that flew to and from the country last year, two thirds were carried by foreign airlines.

Vistara’s maiden offshore flight was due to touch down at Changi airport early on Wednesday.

Vistara, 49 per cent owned by Singapore Air and 51 per cent by Indian conglomerate Tata Group, started out in January 2015. India does not allow foreign airlines to fly between local airports, unless they partner with a local company to start a domestic airline.

The carrier operates 30 Airbus SE and Boeing jets and has a local market share of 5 per cent, the smallest among six major players. It also plans to fly to Dubai and Bangkok. According to the CAPA Centre for Aviation, Vistara could break even in the year ending March 2020.

Vistara is a key element of Singapore Airlines’ multi-hub strategy, and the launch of international operations offers additional opportunities to it, a spokesman for the Southeast Asian carrier said. He declined to comment on competition. A representative for Vistara referred queries to Singapore Airlines, while Emirates declined to comment.