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Vistara has yielded positive results, according to a company update from CEO Vinod Kannan. Despite the tweaks in its network, they managed a 12-15 percent capacity increase compared to April 2023. This growth came alongside strong operational performance, with a passenger load factor (PLF) of 85 per cent for April and an on-time performance (OTP) peak of 91 per cent on April 17th. However, Kannan acknowledged the network adjustments were made “to bring in more operational resilience and flexibility.”
Vistara is now cutting back on flights by a significant 25-30 daily departures, or roughly 10 per cent of its total capacity. This adjustment aims to return to pre-April flight levels and create a buffer in pilot schedules following recent disruptions caused by pilot dissatisfaction with rosters and a new salary structure. Over 150 Vistara flights have been cancelled since April 1st due to these concerns.
Last month, a Vistara spokesperson explained the situation: “We are carefully scaling back our operations by around 25-30 flights per day, which is roughly 10 percent of the capacity we were operating. This will take us back to the same level of flight operations as at the end of February 2024 and provide the much-needed buffer in the rosters.” The spokesperson further assured that “These cancellations have mostly been done in the airline’s domestic network and ’much ahead of time’ to minimise inconvenience to the customers.”
Vistara has apologised for the recent disruptions and claims all affected passengers have been rebooked on other flights. The airline anticipates a full merger with Air India by mid-2025.
The root cause of the pilot discontent mirrors issues at other Tata airlines: work-life balance, fatigue, and pay. Notably, a recent amendment to pilot work-hour regulations intended to improve well-being was deferred due to airline opposition, including Vistara’s.
Vistara’s new salary plan offers a fixed salary for 40 hours of flight time, with additional compensation for exceeding that threshold and a service-based bonus. This aligns with Air India’s pay structure in preparation for the merger. While partially addressing pilot concerns, the spokesperson highlighted the need to match Air India’s pay for the upcoming merger.
The temporary network reduction follows two days of disruptions with over 100 cancellations. CEO Kannan met with pilots, acknowledging rostering issues and promising improvements for better work-life balance.
The Directorate General of Civil Aviation (DGCA) directed Vistara to submit daily reports on cancellations and delays due to pilot sick leave. The regulator also mandated compensation or refunds for affected passengers. This situation highlights the delicate balance airlines need to maintain between operational efficiency and employee satisfaction.
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