ET BureauSingapore Airlines group has four of its airlines flying into India: the eponymous flagship carrier, Tiger Airways, Silk Air and now Scoot. And its CEO Goh Choon Phong wishes that the Indian government relaxes its international flying rules so that Vistara, its joint venture airline with Tata Sons, can fly overseas. At present, a domestic airline has to complete 5 years of operations and has to have a fleet of 20 planes to fly international.
In an interview with ET on the sidelines of the Annual General Meeting of the International Air Transport Association in Dublin, Ireland, he touches on these concerns, discusses what the Modi government has done for aviation in India, and how Singapore Airlines reacts to ownership issues raised by Indian carriers about Vistara. Edited excerpts:
Are you happy with the way Vistara is shaping up?
It’s doing great! Vistara has created a great branding and will continue to expand. I think it has created the right impact in the market in terms of punctuality, reputation and quality.
But its ambitions are stunted because of the 5/20 rule. There are talks of a 0/20 rule wherein an airline has to scale up to 20 aircraft to get overseas flying rights. There’s so much uncertainty...
Relaxing the 5/20 rule will be beneficial for India —for airlines to actually make use of the right to operate internationally. Ideally, there shouldn’t be a limitation. Airlines outside India, with just two aircraft, can fly to India. So there is little reason, especially if you are satisfied with the way it has set up its safety, to impose this restriction.
Once all that is done, it shouldn’t be treated worse than an external airline based somewhere. Objectively, there should be no (additional) requirement at all as long as you are given an operating permit.
But have things changed in the aviation industry after PM Modi took charge?
Obviously, after Modi came to power, we have seen things been liberalised, and there have been some steps for the aviation industry too. But from our perspective, more can be done in terms of removing some of the constraints. The 5/20 rule is just an example.
High cost of operations in India is another. We make it more cost effective so that airlines based in India can play a more effective role in serving in India and expanding.
What are your future plans for Vistara? Will you give the airline some of your ordered wide-bodied planes?
Vistara has its own board and please be very clear that the airline is 51% owned by the Tatas. It’s very clear that it’s an airline that is owned and controlled by the majority shareholders, i.e., the Tatas. Vistara’s expansion is something the board has to decide and not me.
In an interview with ET on the sidelines of the Annual General Meeting of the International Air Transport Association in Dublin, Ireland, he touches on these concerns, discusses what the Modi government has done for aviation in India, and how Singapore Airlines reacts to ownership issues raised by Indian carriers about Vistara. Edited excerpts:
Are you happy with the way Vistara is shaping up?
It’s doing great! Vistara has created a great branding and will continue to expand. I think it has created the right impact in the market in terms of punctuality, reputation and quality.
But its ambitions are stunted because of the 5/20 rule. There are talks of a 0/20 rule wherein an airline has to scale up to 20 aircraft to get overseas flying rights. There’s so much uncertainty...
Relaxing the 5/20 rule will be beneficial for India —for airlines to actually make use of the right to operate internationally. Ideally, there shouldn’t be a limitation. Airlines outside India, with just two aircraft, can fly to India. So there is little reason, especially if you are satisfied with the way it has set up its safety, to impose this restriction.
Once all that is done, it shouldn’t be treated worse than an external airline based somewhere. Objectively, there should be no (additional) requirement at all as long as you are given an operating permit.
But have things changed in the aviation industry after PM Modi took charge?
Obviously, after Modi came to power, we have seen things been liberalised, and there have been some steps for the aviation industry too. But from our perspective, more can be done in terms of removing some of the constraints. The 5/20 rule is just an example.
High cost of operations in India is another. We make it more cost effective so that airlines based in India can play a more effective role in serving in India and expanding.
What are your future plans for Vistara? Will you give the airline some of your ordered wide-bodied planes?
Vistara has its own board and please be very clear that the airline is 51% owned by the Tatas. It’s very clear that it’s an airline that is owned and controlled by the majority shareholders, i.e., the Tatas. Vistara’s expansion is something the board has to decide and not me.
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