Vistara to buy 19 Airbus, Boeing jets for $3.1 bn

Vistara on Wednesday said it would place orders for 19 Airbus and Boeing planes worth $3.1 billion (over Rs 21,300 crore) and induct 37 more aircraft from A320 neo family on lease, as it embarks on "aggressive expansion", including flying overseas.

The more than three-year old airline — a joint venture between Tatas and Singapore Airlines — would be purchasing 13 planes of A320 neo family from Airbus and 6 Dreamliners (787-9 aircraft) from Boeing.

Vistara, which has a fleet of 21 A320 planes, plans to commence its international operations later this year. Taking into account various proposed as well as firmed up orders by domestic airlines, these carriers would add over 1,000 more planes to their existing fleets in the coming years. 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. The letters of intent inked with Airbus and Boeing also provide the option for buying more aircraft from the two plane makers.

Vistara CEO Leslie Thng said that the airline has all along aspired to be a "global international airline". Responding to a query about the decision to have both Airbus and Boeing aircraft in its fleet, he said the A320 neo fleet would be best for strengthening domestic operations and for starting international operations, regionally as well as on short haul routes.

For medium and long haul operations, Leslie Thng said it is a different market and a different strategy in terms of "how we want to do it, when we want to do it and where we want to deploy (these aircraft)".

The Dreamliners were the best fleet for Vistara in terms of "mission, strategy and the way we want to embark on our medium to long haul international operations", he said. "We look at Boeing in terms of commercial proposals, product, fuel efficiency as compared to where we intend to eventually deploy these aircraft overseas in medium to long haul (routes)... compared to other aircraft available, 787 is the best fleet for us," he noted.