Vistara looks to lease long-haul planes to fill gap amidst 787 delays

Vistara looks to lease long-haul planes to fill gap amidst 787 delays

New Delhi – Vistara, India’s full-service airline is looking to lease long-haul planes to cover a gap left by delays in Boeing 787 deliveries, chief executive Vinod Kannan said in an interview with Reuters.

Vistara, is owned by Singapore Airlines and India's Tata Group. The airline is waiting to receive four aircraft from Boeing's 787 production line, deliveries of which have been frozen globally since May 2021 due to quality-control shortcomings.

Vistara has about 50 aircraft, including two 787-9s received before the delivery suspension and a mix of Airbus and Boeing narrow-body airliners. It plans to take 20 more aircraft by the end of 2023, mostly A320s to be used domestically and for nearby international destinations.

The airline which began its operations in 2015 is expanding globally. This is a priority for the airline which has not yet made a profit since its launch. India's domestic market is dominated by low-cost carriers, such as IndiGo International offering a much stronger pricing.

Vistara's operates flights in and out of about a dozen foreign cities, such as London, Paris and Frankfurt. The international operations comprise around 25% of its capacity. The airline wants to expand this to 35% over the next two years and is also looking at direct flights to the United States, South Korea and Japan, Kannan said.

Tata this year acquired Vistara's direct competitor, Air India. Kannan said the two airlines are exploring how they can cooperate without violating competition rules.
-Reuters

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