Infra, fuel prices remain constraints for Indian aviation: Vistara CEO Leslie Thng

In order to improve its global connectivity, Indian airliner, Vistara is all set to commence its international operations with its  Airbus fleet of A 320Neos.

CNBC TV 18  quoted CEO Leslie Thng as saying that the airline has announced  a combined order of 19 planes from Airbus and Boeing worth $3.1 billion. He, however added that factors like country's infrastructure and rising fuel prices remain constraints for the growing Indian aviation market.

Revealing the strategy behind the order for new jets, Leslie said, “The orders are a landmark step in Vistara’s journey and that the aircraft from Airbus will help us densify our domestic network and to support the launch of our international operations later this year, while the aircraft from Boeing will help us expand into medium and long-haul international routes.”

Vistara  will start getting the deliveries of these jets this year. “The aircraft from Airbus are scheduled for delivery between 2019 and 2023, and the six wide-body aircraft from Boeing will be delivered between 2019 and 2020.” said the CEO.

Leslie told CNBCTV 18 while talking about the challenges of Indian market,“The cost of doing business in the Indian aviation sector continues to rise. Volatility in fuel prices combined with the high tax on aviation turbine fuel and other national policy related issues continue to challenge the sector’s growth.”

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Besides, he believes that country’s infrastructure is also a constraint to airlines and eventually to  all related businesses.

However, he also added that an increased impetus on the infrastructure development by the government makes him confident of growth for Vistara as well as of the industry on the whole.