Now, Vistara to offer low economy fares with option to buy meals on board

NEW DELHI: Full-service carrier (FSC) Vistara will now give the option of a basic economy fare where flyers will need to buy meals on board like they do on low-cost carriers (LCC). The Tata-Singapore Airlines JV will introduce a new economy fare category called "lite" from August 29, where flyers will get meals on board against payment. While "lite" passengers, like regular economy ones, will get 15 kg of check-in baggage, but the "lite" flyers will need to do so in one bag unless they want to incur extra charges.

The move by Vistara comes as carriers — both LCCs and FSCs — are trying to find new ways to generate some much-needed cash as operating costs are spiralling up and airlines are unable to hike fares accordingly due to stiff competition. A couple of years back, LCCs had started a lower hand bag only fare for passengers who did not have any check-in baggage so that their ticket prices could fall by a couple of hundred. Other FSCs could also roll out a buy-on-board meals basic economy fare.

Vistara says it has introduced the new fare type "lite" on Tuesday to "better meet needs of customers that do not require certain features to be included in the fare." It did so while announcing "Vistara freedom fares" — a menu-based pricing model (that lets) customers choose the kind of fare and services that suit them best.

"Lite fares will be available in economy class only, and is a new category of fares for customers seeking simply the lowest fares, that does not include complimentary meals. However a buy-on-board option of snacks and drinks will be available…. Lite fares are not upgradeable, non-changeable and non-refundable (though taxes are always fully refundable). The free checked baggage allowance remains at 15kg, but is restricted to one piece of checked baggage only," the airline said. While the prices and menu for "lite" passengers is yet to be announced, an official said the rates would be "reasonable".

The airline also announced Vistara World, "its free in-flight entertainment system with video and audio content of more than 70 hours streamed wirelessly onto personal handheld devices and laptops." Vistara World will be rolled out fleet-wide in August 2018, subject to regulatory approvals.

Vistara CEO Leslie Thng said: "Consumers today have a vast range of options and the one-size-fits-all approach is increasingly becoming redundant. It is the age of flexibility; of deciding for yourself; of doing things at your own terms. We observed this consumer behaviour over a period of time and are delighted to bring ‘Vistara Freedom Fares’ to the discerning travellers, while also further enhancing our product and service portfolio with ‘Vistara World’."

The airline’s chief strategy and commercial officer Sanjiv Kapoor said: "Our new fare model also addresses customer feedback related to change and cancel fees. With ‘Vistara Freedom Fare’, we’re offering flexi fares at reasonable add-on rates to standard fares, and in exchange giving customers much lower or zero cancel fees along with other enhanced benefits. Together with the introduction of wireless streaming of in-flight entertainment content, the attractive bundled features will provide more choices and value to customers and also help us enhance overall customer satisfaction and experience."