Vistara, the joint venture between Tatas and Singapore Airlines, has become the first carrier in the country to offer three-class configuration on domestic routes.

It will start services on January 9, offering connections to Mumbai and Ahmedabad from its hub in Delhi.

On the 148-seater Airbus A320 aircraft, Vistara will offer 16 seats in Business, 36 in Premium Economy and 96 in Economy Class.

But will the concept of Premium Economy work in India? Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, said: “It would be interesting to see the market response once the novelty factor wears off in six months’ time. The average Indian passenger is highly cost conscious. For short two hour flights, families travelling on personal expense may not be willing to shell out a significant premium.” Neelu Singh, Chief Operating Officer of travel portal Ezeego1.com, said the Premium Economy segment may see traction from mid-managers who are looking for more comfort than an economy class but cheaper fares than a business class.

Dubey said: “Some corporate entities may be willing to allow senior and middle level executives to fly Premium Economy. That needs to be seen. Given the flexibility in changing cabin configuration, should the experiment fail, it would not cost Vistara much, to revert back to the traditional two cabin configuration”.

Vistara’s Premium Economy segment will have more leg space and additional baggage allowance of 20 kg as against 15 kg in Economy, according to details on its website.

It appears that Vistara will not play the price game. On Friday morning, the lowest fare available on the Delhi-Mumbai leg for January 9 was at ₹5,500. By evening, the cheapest economy flight on this route was retailing for over ₹11,000.

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