Fly the new feelingwith

Airbus A320

Aarushi AgarwalKunal AgarwalGirish MenonTanvi BasinMamta Rani

About Vistara • Vistara, a full-service airline, is a joint venture between Tata Sons Ltd. and Singapore Airlines (SIA) founded in 2013.

• The name Vistara is drawn from the Sanskrit word Vistaar, which means limitless expanse.

• The slogan of the airlines is “Fly the new feeling”.

• Vistara is an Indian airline based in Gurgaon with its hub at Delhi-Indira Gandhi International Airport.

• Phee Teik Yeoh is the CEO , Giam Ming Toh is the CCO and Bhaskar bhat is the new chairman of vistara airlines.

• It commenced operations on 9 January 2015 with its inaugural flight b/w Delhi and Mumbai and had carried one million passengers by December

2015.

• As of January 2016, the airline operates 311 weekly scheduled passenger services across 12 domestic destinations within India.

• Vistara was the first airline to introduce premium economy seats on domestic routes in India.

Its Different

• No cheap fares, no discounts

• Loyalty by money, not miles

• Low-cost thinking, full-service offering

• No advertisements, no fan-fare

• Three-class configuration

Business Model• Nearly 70 per cent of the costs are fixed, which includes aviation turbine fuel (ATF) expenses,

landing and parking charges, and leasing cost.• It has to manage the remaining 30 % well to stay profitable.• To reduce costs it decided to make Delhi a hub because it has low ATF prices and a less

congested airport compared to other metros.• Fuel costs account for 45-50 % of an airline's cost whereas airport cost is less than 10 %.• At the planning stage, a huge emphasis was given on costs and reducing the time to get

things ready• The airline decided to go for simple leasing instead of the sale-and-lease-back model, which

many domestic carriers follow• It has kept the manpower lean. With total staff strength of over 400 and five planes, the

plane-to-employee ratio is about 80, which is lower than the ideal ratio of 90.

Funding

• Tata Sons and Singapore Airlines (SIA) have invested Rs 500 crore in their joint venture airline Vistara.This is part of the Rs 600-crore funding commitment the partners had announced in 2013

• Vistara is sufficiently funded to manage operations in the initial phase.

• The latest round of funding (of Rs 200 crore) and fresh allotment of shares to the promoters took place in August

9 flights12 destination311 weekly scheduled passengers service

Costing• The price of a ticket consists of a number of things.

• Base fare• Taxes and airport fees• Fuel surcharge• Service fee to issue• Food• Seat selection• Baggage

Fuel ChargeWe are taking airbus A320 from Delhi to Mumbai for finding out the cost.

• The flight distance from Delhi, India to Mumbai, India is: 722 miles / 1 163 km*

• Aviation fuel charge = ₹39,892.32**per kilolitre

• Fuel efficiency per seat = 2.61 litres per 100 kilometres***

• Fuel efficiency per seat per km = 0.0261 litres

• Fuel efficiency of airbus A320 per km =3.915 litres

• Fuel required from delhi to mumbai = 4553.145 litres

• Cost of 4553.145 litres of petrol = ₹181635.5173

• Cost per seat = ₹1210.90Source - *http://www.travelmath.com/flying-distance/from/Delhi,+India/to/Mumbai,+India ** https://www.iocl.com/products/aviationturbinefuel.aspx *** https://en.wikipedia.org/wiki/Fuel_economy_in_aircraft

Cost of AirbusCost of Airbus A320 = ₹ 6599826650.00scrap value = ₹ 564860235.00life span = ₹ 20 yearsdepreciation cost = ₹ 301748320.80per day = ₹ 826707assuming a single airbus travel 5 times a daycost of airbus for single route = ₹ 165341.4

Salarysalary per day paid by Vistara = ₹ 850000Vistara as of now have 9 airbus salary cost per flight per route = ₹ 18888.80

Airport charges = ₹ 101550

food and servings = ₹ 67500

Fixed Costs (per aircraft) annuallyInsurance (Aircraft) = ₹ 2,17,800Overheads = ₹ 98,000Service cost = ₹ 90,000 Maintainance = ₹ 25,00,000Taxes = ₹ 23,64,000 approx

Vistara airbus A320 have 148 seats

Per seat cost = ₹ 2455.20Plus fuel cost = ₹ 1210Total cost per seat of vistara airbus A320 from DELHI to MUMBAI= ₹3655

THANK YOU