NEW DELHI :
Vistara, a joint venture of Tata Sons and Singapore Airlines, on Thursday said that it has finalized an order worth $2.4 billion for 26 engines to power 13 new Airbus A320neo and a long term engine maintenance contract for its Airbus fleet.
"Alongside this engine order, Vistara signed a long-term Rate Per Flight Hour (RPFH) agreement for the maintenance of the 120 (CFM) LEAP-1A engines that power 60 such Airbus A320neo and A321neo aircraft in service or in order," Vistara said in a statement.
"The combination of the RPFH agreement and the engine order is valued at more than $2.4 billion U.S. at list price," it added.
CFM International is a joint venture between GE Aviation, a division of General Electric of the US, and Safran Aircraft Engines, a division of Safran of France
Under the terms of the RPFH agreement, engine maker CFM guarantees maintenance costs for the Vistara’s LEAP-1A engines on a dollar per engine flight hour basis.
"The combination of the LEAP-1A engine and A320neo continue to deliver exceptional performance and helps Vistara maintain the highest standards of operational efficiency," said Leslie Thng, CEO of Vistara.
The airline also finalized a deal to lease 37 aircraft from the A320neo family, ordered in July 2018 and 10 similar leased aircraft already in service, Vistara said in the statement.
During July 2018, Vistara placed an order 19 planes, which included wide body planes, worth $3.1 billion from Airbus SE and Boeing Co.
Vistara currently has 23 Airbus A320 and nie Boeing 737-800NG aircraft fleet, according to its website.
The airline, which will get delivery of wide body planes early next year, is looking to start long-haul international flights to destinations in Europe and Australia.