Vistara trying to retain jobs & cut spending: Chairman Bhaskar Bhat | Economic Times

MUMBAI: Vistara's balance-sheet is “reasonably good” in terms of liquidity and there is no pressing need for any immediate fund infusion by Tata Sons, said Bhaskar Bhat, the chairman of Tata SIA Airlines that operates the airline.Vistara is focusing on conserving cash and tackling business on a day-to-day basis amid the Covid-19 crisis and lockdown, and is keeping its employees well informed about its moves, Bhat told ET. "At the moment we are doing all we can to holding onto their jobs and cutting as much cash outgo as possible. Like all airlines, we are also in regular touch with the government on the on-ground situation and reopening of travel permissions keeping customer safety and precautions in mind," he said.75666392It will be good to go “full throttle into ending lockdown and get the economy back on its feet”, while ensuring precautions against health risks, he said. “The virus does not seem to be a challenge that will disappear for a while, until a cure comes in. Everyone will have to find a way to work around it to prevent financial losses, too."Vistara, however, has the backing of Tata Sons in case of urgent liquidity requirements, as part of a five-year growth plan put in place for the airline. Senior executives said the presence of two robust promoters in Tata Sons and Singapore Airlines has put Vistara in a better position than most airlines.“Both of Vistara’s promoters are in the game for the long run and will continue to support the business through this crisis. Also, remember there will be a massive uptick in demand for travel once this is over, although that will take a long time,” Martin Consulting founder Mark Martin said."It will be our employees who will go the extra mile to get the business back to normalcy and they will remember how they have been treated in rough times. Respect and empathy is very important" Bhat said. Pay cuts initiated by the airline company have been restricted to senior staff, he said. “We are mindful of the requirements of business,” Bhat said, adding that both parents had equally participated in fund infusion.“Singapore Airlines is now in a slightly better position to aid Vistara following a rights issue that raised almost $10 billion,” said Shukor Yusof, the founder of Kuala Lumpur-based consultant Endau Analytics. Many experts, though, said funds raised by SIA weren’t enough.