Vistara, the joint venture between Tata Sons and Singapore Airlines, has finalised with CFM International an agreement to purchase 26 LEAP-1A engines to power 13 Airbus A320neo aircraft. The Delhi-based airline also signed a long-term engine maintenance agreement for 120 LEAP-1A engines on 60 Airbus A320neo aircraft in its fleet.
"The combination of the RPFH (rate per flight hour) agreement and the engine order is valued at more than $2.4 billion U.S. at list price," the company said in a statement.
These 13 Airbus A320neo planes will be in addition to the 37 leased aircraft from the A320neo family, ordered in July 2018, and the ten leased aircraft already in service.
"The combination of the LEAP-1A engine and A320neo continue to deliver exceptional performance and helps Vistara maintain the highest standards of operational efficiency. We are happy to extend our partnership with CFM International and select the LEAP-1A engine for our new aircraft as well to support our growth plan," said Vistara CEO Leslie Thng.
Under the engine service agreement, CFM International guarantees maintenance costs for the Vistara's LEAP-1A engines on a dollar per engine flight hour basis.
Vistara presently has a fleet of 23 Airbus A320 aircraft and nine Boeing 737-800NG planes. The airline is awaiting delivery of wide-body aeroplanes to commence flight operations on international routes.