India’s Vistara airlines will buy 19 Boeing (BA) and Airbus (EADSY) aircraft, powered by General Electric (GE) jet engines, in a multibillion dollar deal as the carrier plans massive expansion and eyes overseas growth.
Vistara announced Tuesday that it has placed firm orders for 13 Airbus A320neos and for six Boeing 787-9 Dreamliners, with a combined value of $3.1 billion at list prices.
The joint venture between India’s Tata Sons — also the parent company of automaker Tata Motors (TTM) — and Singapore Airlines will procure another 37 A320neos from leasing companies. It has purchase rights for four more 787 Dreamliners and options for seven more A320neos.
It selected the LEAP 1-A engines from CFM International, a joint venture between GE and France’s Safran, to power the A320neos. GE’s GEnx-1B engines will power the Dreamliner aircraft.
“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, Vistara CEO Leslie Thng said in a statement.
But shares were under pressure as President Trump escalated his trade war with China. Boeing lost 1.9% on the stock market today after testing the 50-day moving average the previous session. Airbus gave up 0.6%, and GE fell 1.3% as it continues to test the 50-day line. Tata Motors dived 3.5%.
Vistara, which began operations in 2015, serves 22 destinations with over 800 flights a week using a fleet of 21 Airbus aircraft, making its latest order a first for Boeing.
“We are delighted to further deepen our relationship with Airbus and to join hands with Boeing,” Vistara said Tuesday.
The $3.1 billion Vistara order also boosts GE’s aviation operations. The conglomerate announced in June that it will slim down to focus on power, aviation and renewable energy over the next few years.
(PTI)
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