Vistara to buy 19 Airbus, Boeing planes worth $3.1 billion

Vistara on Wednesday announced placing orders for a total of 19 Airbus and Boeing aircraft worth USD 3.1 billion (approx Rs 21,344 crore), as the carrier embarks on ambitious expansion plans, including flying overseas. The airline, which currently has a fleet of 21 aircraft from A320 neo family, plans to add another 50 such planes.

In a statement, Vistara said it has agreed to place firm orders with Airbus for 13 aircraft from the A320 neo family and with Boeing for six 787-9 Dreamliner.

"Together, the deals are valued at USD 3.1 billion, based on published list prices," it said.

The letter of intent signed with Airbus is for 13 A320 neo and A321 neo aircraft as well as options for buying seven more aircraft from the A320 neo family.

Vistara would also lease another 37 new A320 neo family aircraft from leasing companies, the statement said.

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 be 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.

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Vistara CEO Leslie Thng said, 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 the airline confident of aggressive plans for domestic expansion and international foray.

"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 said.

Vistara is a joint venture between Tata Sons and Singapore Airlines. At present, the airline serves 22 destinations with over 800 flights a week.