Vistara inks $3.1 billion worth of deals with Airbus and Boeing
On July 11, 2018, India’s full-service domestic carrier, Vistara, a joint venture between Singapore Airlines Group and the Mumbai-based holding company Tata Sons, has come to the agreement to place firm orders for 13 Airbus and six Boeing jetliners, as the carrier plans to not only boost its domestic network, but also launch international flights. These are aggressive plans indeed, because together the deals are worth a lofty over $3 billion sum. So what exact orders and options has Vistara placed with the two plane making giants?
The Airbus deal
Apart from the main Airbus order, comprising 13 single-aisle jets from the A320neo Family - the A320neo and A321neo, - Vistara’s letter of intent included options for seven more aircraft from the A320neo Family.
Beyond that, the company will lease another 37 new A320neo Family jets from leasing companies. With this, Vistara will eventually expand its fleet by a total of 50 A320neo Family aircraft. The addition of these new jetliners will complement the carrier’s existing fleet of 13 A320ceo and eight A320neo planes.
To power the A320neo and A321neo jets, Vistara has selected the LEAP-1A engines from CFM International, which are to be delivered between 2019 and 2023. In an official statement, the company says it will use these aircraft to densify its domestic network and to support its international operations planned for later in 2018.
The Boeing deal
The letter of intent signed with Boeing comprises six firm-ordered 787-9 Dreamliners and Purchase Rights for four more aircraft from the 787 Dreamliner Family. For these airliners, Vistara states it has decided to order General Electric Next-generation GEnx-1B engines, which are scheduled to be delivered between 2020 and 2021. The 787-9s are expected to be operated on medium-haul and long-haul international routes.
The list price
The 13 A320neo and A321neo jets ordered by Vistara from Airbus, have a list price starting at around $111 million each. The six 787-9 Dreamliners ordered from Boeing, are valued around $282 million each at list price. The combined order is valued $3.1 billion at list price, excluding customary discounts, Bloomberg reports.
Vistara’s CEO, Leslie Thng, called the deals “a landmark step in Vistara’s journey” and highlighted the company’s commitment to contribute to the rise of India’s aviation industry.
“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,” the CEO commented
Since starting operations in 2015, today, Vistara serves 22 destinations with over 800 flights a week and a fleet of 21 aircraft (at least for now).
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