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Vistara in talks with Airbus, Boeing to buy jets worth $8.5 billion

Vistara is seeking to buy about 50 narrowbody jets, typically used for shorter routes, and up to 10 widebodies

Anurag Kotoky & Benjamin Katz | Bloomberg 

Vistara
Vistara

Vistara, the Indian affiliate of Singapore Airlines, is in talks with SE and Co to buy worth as much as $8.5 billion as the carrier seeks to tap India’s growing middle class, according to people familiar with the plans.

Vistara, a joint venture (JV) with majority owner Tata Group, is seeking to buy about 50 narrowbody jets, typically used for shorter routes, and up to 10 widebodies, said the people, who asked not to be named discussing private negotiations. A final decision is likely by June, one of the people said.

A representative for didn’t respond to requests for comments.

An spokesman said the company’s discussions with customers are confidential. A spokesman declined to comment.

The order is the first of several expected aircraft deals Indian carriers are set to place in the coming months, as carriers expand in the world’s fastest growing major aviation market. Budget operators IndiGo, run by InterGlobe Aviation, and SpiceJet are now exploring the low-cost, long-haul model, which would need widebody aircraft on top of the more than 500 single-aisle already on order from them. Jet Airways India is also in talks to buy as many as 100 narrowbody

At the Singapore Airshow this week, and are pitching their new fuel-efficient aircraft to help airlines counter rising oil prices. After years of ordering planes, Gulf carriers like Emirates Airline, Qatar Airways and Etihad Airways Public Joint Stock Company have slowed down, with the focus shifting to Asia.

Asia Pacific is likely to have 3.5 billion passengers by 2036, adding more than double the forecast for North America and Europe combined, according to the International Air Transport Association estimates. To meet that demand, estimates carriers will need 16,050 new aircraft valued at $2.5 trillion by 2036.

First Published: Wed, February 07 2018. 00:08 IST
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