Tata Sons and Singapore Airlines' joint venture Vistara has entered into a deal with Airbus and Boeing for 13 A320 neo aircraft and six B787-9 Dreamliners, the airline announced on Wednesday. Both deals are together valued at $3.1 billion.
Vistara plans to add these planes to its fleet between 2019 and 2023.
The letter of intent signed with Airbus comprises firm orders for 13 A320 neo and A321 neo aircraft as well as options for seven more aircraft from the A320 neo family. The airline will also lease another 37 new A320 neo family aircraft from leasing companies, taking the total new A320 neo planes it intends to add it its fleet to 50, Vistara said in a statement.
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The A320s will be inducted into the fleet between 2019 and 2023. These planes will be used for domestic as well international flights, which it plans to start from later this year.
The agreement with Boeing comprises firm orders for six B787-9 Dreamliners and purchase rights for four more aircraft from the 787 Dreamliner family. Vistara will take deliveries of these aircraft between 2020 and 2021. These planes will be used for medium haul and long haul international flights.
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“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. These orders are a landmark step in Vistara’s journey and demonstrate our deep-rooted commitment to contributing to the rise of the Indian aviation industry and to offering more choices to our customers,” Vistara CEO, Leslie Thng, said.
The airline currently has a fleet size of 21 aircraft, comprising 13 Airbus A320ceo and eight A320 neo aircraft. It will also induct its final plane from the previous order with Airbus in September taking its fleet size to 22.