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Vistara orders Boeing, Airbus jets worth $3.1 billion in growth plan

Reuters  |  NEW DELHI/SINGAPORE 

By and Jamie Freed

NEW DELHI/SINGAPORE (Reuters) - Indian has placed firm orders for six 787 jets and 13 SE A320neos valued at $3.1 billion at list prices, as it looks to add more domestic flights and launch international routes later this year.

The order for Boeing's marks a new setback for in an intense battle for widebody orders as the European planemaker seeks to strengthen the order book for its upgraded A330neo passenger jet.

Boeing posted figures on Tuesday showing a significant lead in new orders over its European rival, buoyed by demand for the 787 following a series of showdowns against the A330neo.

said last week it saw good demand for the upgraded jet and is expected to announce orders soon. The Farnborough Airshow, which typically attracts large numbers of orders, will be held in Britain next week.

joins rival and low-cost carriers and 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 foray," said in a statement on Wednesday.

The joint venture between India's and Singapore Airlines Ltd, said it would procure another 37 A320neos from leasing companies and also had purchase rights over 4 more and options over 7 more A320neos.

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

INTERNATIONAL TRAVEL

There is huge potential for international travel from India, where the domestic aviation market has grown about 20 percent annually in recent years.

Only 0.3 percent of the 1.3 billion population currently travel abroad for a holiday every year, a fraction of the estimated 100 million 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 widebody order within the next 1-2 years and also expects InterGlobe Aviation's to pursue an "aggressive international strategy" by soon announcing a large order.

"will see closer to 100 wide-body orders in next 1-2 years indicating a strong international strategy," said Kapil Kaul, and director for at CAPA.

placed a firm order in June for 75 MAX aircraft, taking the total to 225 new aircraft which it expects to add to its fleet over the next decade.

(Reporting by in New Delhi and in Singapore, Additional reporting by in Mumbai and Tim Hepher in Paris; Editing by and Muralikumar Anantharaman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 11 2018. 14:57 IST
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