Vistara to acquire 19 Airbus and Boeing aircraft worth $3.1 billion
11 July 2018
Vistara today announced a major fleet expansion plan involving acquisition of 19 Airbus and Boeing aircraft worth $3.1 billion (approx Rs 21,344 crore), as the carrier looks to fly to new destinations, including overseas.
Vistara, a joint venture of Tata Sons and Singapore Airlines, has agreed to place firm orders with Airbus for 13 aircrafts from the A320neo family and with Boeing for six 787-9 Dreamliners. Together, the deals are valued at $3.1 billion based on published list prices, says a company release.
The letter of intent signed with Airbus comprises 13 firm-ordered A320neo and A321neo aircraft, as well as options for seven more aircraft from the A320neo family.
In addition, Vistara will lease another 37 new A320neo-family aircraft from leasing companies. Together, Vistara will be adding a total of 50 A320neo-family aircrafts into its existing fleet.
The airline has selected the LEAP 1-A engines from CFM International for the A320 neo and A321 neo aircraft, which are to be delivered between 2019 and 2023. These aircraft would be used to strengthen its domestic network and to support its international operations planned for later this year, the statement said.
The letter of intent signed with Boeing comprises six firm-ordered 787-9 Dreamliner and purchase rights for four more aircraft from the 787 Dreamliner family, it added. For these planes, the airline has selected General Electric GEnx-1B engines, and delivery is scheduled between 2020 and 2021. “The 787-9s are intended for use on medium-haul and long-haul international routes,” it added.
“India’s position as the world’s fastest growing domestic aviation market and its impressive growth in air passenger traffic that has more than doubled over the last decade, makes us confident of our aggressive plans for domestic expansion and international foray, “Leslie Thng, CEO, Vistara, said.
“We are delighted to further deepen our relationship with Airbus and to join hands with Boeing to strengthen our modern and fuel-efficient fleet that will help achieve our thought-through ambitions,” he added.
The addition of the new aircrafts will complement Vistara’s existing fleet of 13 Airbus A320ceo and eight A320neo aircrafts that have enabled the airline thus far to achieve operational excellence. From the initial order, Vistara has an impending delivery for one A320neo which is due in September 2018.
Vistara today serves 22 destinations with over 800 flights a week and fleet of 21 aircraft. In a short span of time since starting operations in 2015, the airline has already flown 10 million customers.