Micro Environment Factors of Vistara Airlines-

 Competitors- The threats for any business can be factors which can
negatively impact its business. Some factors like increased competitor
activity, changing government policies, alternate products or services etc. can be
threats. The Indian aviation sector is too price sensitive. External factors like taxes in
the aviation sector can cause issues for new brands like Vistara. There are several
brands in the market which are competing for the same set of customers like Indigo,
Jet Airways, SpiceJet, AirAsia etc. Another form of competitor for the airlines is the
growth of automation. Applications like Skype, Zoom, Google Meet have changed the
way of doing business or operations. People choose to use these applications to
save time, money and also reduce their carbon footprint.
The next micro environmental factor is
 Intermediaries- Vistara has been revolutionary in the domestic air travel industry
since its inception. With unmatched luxurious offerings and world class services,
Vistara has been successful in creating brand loyalists in a short span of time. Owing
to the same, Vistara has won the trust of various international airlines looking to
grow their presence in India.

 Supplier is next factor

 Suppliers- The airline is conducting a global safety audit and forging tie-ups with
foreign airlines to increase visibility among global flyers. As a part of this measure, in
September 2018, Vistara tied-up with British Airways for a code-sharing agreement
that gives its passengers a direct access to the British Airways global network by way
of flight transfers. In addition, Vistara already has several interline international
partnerships with 26 airlines, which gives its passengers a priority in terms of
bookings on the routes served by the international partners. Vistara has signed a
long-term contract to partner with Airbus for their Flight Hour Services – Tailored
Support Package (FHS-TSP). The contract will cover engineering and maintenance for
62 aircraft, including 23 existing ones. The FHS-TSP contract provides integrated and
guaranteed services.
 Company- Vistara is launching new routes, adding new planes and expanding
gradually. Though the company advertises online, through print media and through
electronic media, it does not throw flashy launch parties. Vistara flies to 24
destinations across the length and breadth of India. It operates 800 flights a week
with a fleet of 22 Airbus A320s and four Boeing 737-800NG aircraft. It is also an
interline international partner to 26 international airlines. Vistara tickets are available
on all major travel websites (such as makemytrip.com, yatra.com, goibibo.com, etc.)
and direct booking is also possible through its website (www.airvistara.com).
 Public- Value for money is what Indian consumers want. Looking at the overall
behaviour of Indian consumers across sector, one can easily say that value for
money is a key focus for them, especially in the service sector. This means that while
a segment of consumers often prefer the cheapest option available, there is a huge
segment of consumers which weighs what is it that they are getting out of their
money. So, they may want a specialized service, better seats, meals, lounge access,
etc. and they might be inclined to pay premium for it. But the question is how much
premium? And do they really see value out of that premium? If the Tata-SIA's Vistara
can work that equation well along with the right cost structure, it can make space for
itself in this cost driven airline industry. Unlike its competitors, Vistara does not
believe in huge discounts. Vistara keeps to its position of a full-service airline very
much like its parent SIA, a premium-priced full-service airline. This as a result is
creating hindrance in establishing ‘goodwill’ among the public.