Tata Sons-Singapore Airlines owned Vistara to take wings from January

Almost after 14 months of announcing the joint venture between Tata Sons and Singapore Airlines (SIA), the Directorate General of Civil Aviation (DGCA) has granted the air operator permit (AOP) to the JV on Monday for flying as a full service carrier.

The airline will fly under the brand name Vistara and is likely to start operations on January 7, 2015 or first week of the month.

Confirming the development, Vistara spokesperson said, "We have received the flying permit and the operations are likely to begin in the first week of next year." However, the airline did not specify further details on specific routes that Vistara will start with.

The airline said that it will soon make announcements on the start of sales, routes and schedules.

dna recently reported that the airline is likely to take off by the end of December or early 2015 as the airline concluded the mandatory trial flight schedule in the presence of DGCA.

Stationed in New Delhi, the airline currently has has 2 aircraft as part of its fleet and the third aircraft is likely to join the fleet soon.

In September last year, Tata Sons and SIA announced their interest of forming a JV for a full service airline, wherein Tata Sons hold 51% stakes with an investment of $51 million (Rs315 crore), while SIA owns 49% with an investment of around Rs303 crore. The Foreign Investment Promotion Board (FIPB) gave a nod for the proposed airline in October last year.

The airline is expected to target the major metros initially, with a bigger appetite for full-service carriers. Vistara will compete with the existing players like Jet Airways and Air India in the full service-space.

"I am delighted that we have successfully cleared the final requirement and secured the AOP (Air Operator's Permit). We are thankful to the ministry of civil aviation for their support and guidance during the entire process," said Phee Teik Yeoh, chief executive, Vistara.

Vistara chairman Prasad Menon said in a statement, "Receiving the AOP is a key milestone for Vistara. We are all looking forward to the first flight with excitement."

This will be the second airline under the Tata Group after AirAsia India started its operations in the low cost space.

Entry of Vistara comes at a time when the Indian operations of most existing airlines are bleeding. As per the estimates of Centre for Asia Pacific Aviation, the expected industry loss could be around at $1.3-1.4 billion for the current fiscal compared with $1.5 billion last year.

After the closure of Kingfisher Airlines, low-cost carrier SpiceJet is looking at a bailout from the government in order to survive in the market. The airline met the ministry officials on Monday to discuss its survival plan.