LARGE ORDER FOR AIR­LIN­ERS FROM VIS­TARA

SP's Airbuz - - News Briefs -

In a ma­jor ex­pan­sion bid, Tata Sons and Sin­ga­pore Air­lines’ joint ven­ture, Vis­tara, has placed an order for 50 Air­bus A320­neos and A321­neos air­lin­ers also for six Boe­ing 787-9 Dream­lin­ers. This is the first ma­jor order by the air­line since launch of op­er­a­tions in 2015. While the air­line has signed an agree­ment with Air­bus for 13 A320­neos, it will lease 37 air­craft. Ad­di­tion­ally, the air­line has kept the op­tion open to order four more Dream­lin­ers from Boe­ing. Chief Ex­ec­u­tive Of­fi­cer Les­lie Thng said he was con­vinced that the order would pro­vide a fil­lip for prof­itable op­er­a­tions as it would en­able the air­line to make its net­work denser and op­er­ate on more prof­itable in­ter­na­tional routes. “We will use the A320 and A321 to boost our do­mes­tic net­work as well as to launch in­ter­na­tional des­ti­na­tions from our hub in Delhi. Si­mul­ta­ne­ously, the Dream­lin­ers would be used to start des­ti­na­tions on the medium and long-haul in­ter­na­tional routes,” Thng said. The first batch of the sin­gle-aisle A320­neo would be de­liv­ered in the first half of 2019, while the Dream­lin­ers would join the fleet in the first half of 2020. It cur­rently has a fleet of 21 A320 planes.

Op­er­at­ing in one of the world’s most price-sen­si­tive mar­kets, Vis­tara is yet to be­come prof­itable and has been able to cor­ner only four per cent of the do­mes­tic mar­ket. Last year, the air­line earned 3.36 per seat per km, while spend­ing 4.69 for the same. In com­par­i­son, low-cost air­line In­diGo, which com­mands 40 per cent share of the mar­ket, spent 3.04 to earn 3.40.

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