Vistara places $3.1 billion order for new flights

Indian airline Vistara is in the processes expansion in term of domestic and international flights. As part of their growth plans, they have placed orders for six Boeing Co 787 Jets and 13 Airbus SE A320neos valued at $3.1 billion at list prices.

Vistara joins rival Jet Airways and low-cost carriers IndiGo and SpiceJet that have plans to grow their international operations to offset a highly competitive, price-sensitive domestic market. “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 venture,” Vistara CEO Leslie Thng said in a statement.

Vistara -the joint venture between India`s Tata Sons Ltd and Singapore Airlines Ltd, said it would procure another 37 A320neos from leasing companies and also had purchase rights over 4 more 787-9s and options over 7 more A320neos.

The purchased and leased Airbus jets, fitted with CFM International LEAP engines, will be delivered between 2019 and 2023. The Boeing jets, to be powered by GE engines and used for medium and long-haul flights, are expected in 2020 and 2021.

There is huge potential for international travel from India, where the domestic aviation market has grown about 20 per cent annually in recent years. Only 0.3 per cent of the 1.3 billion population currently travel abroad for a holiday every year, a fraction of the estimated 100 million Indians who could potentially afford to do so, according to an analysis of household income by aviation consultancy CAPA.

CAPA expects Vistara to place another large wide-body order within the next 1-2 years and also expects Inter Globe Aviation`s IndiGo to pursue an “aggressive international strategy” by soon announcing a large order.