India’s Vistara mulls short-term leases due to 787 delays

Vistara (UK, Delhi Int’l) is evaluating its fleet options for its planned expansion to the United States in light of the ongoing suspension of new B787 deliveries due to manufacturing issues, Chief Executive Vinod Kannan told the Business Standard daily.

“We have asked Boeing for updates. We still don’t have a firm picture on that. So, we have started looking at other options on whether we should get a temporary lease of aircraft. The only drawback is the current fuel price. From a financial perspective, we are evaluating this,” he said.

The full-service carrier’s widebody fleet currently comprises two B787-9s, with a further four on firm order from Boeing. However, Vistara’s B787s are configured for medium-haul services with reduced maximum take-off weight and no crew rest areas. They are also fully utilised on the airline’s current network, flying to London Heathrow, Frankfurt Int’l, and Paris CDG. As such, the current fleet is insufficient for a planned US expansion.

Vistara intended to add more B787-9s for its North American flights. The carrier secured its foreign air carrier permit in 2021 for services via London Gatwick. However, Kannan said Vistara was now also evaluating non-stop flights.

“Even for one-stop [services], I need new aircraft because the current aircraft are being fully utilised. So, if I take a new aircraft, it is better to do it non-stop. All these things are currently under negotiations,” the CEO explained.

Kannan added that Vistara is to remain an independent carrier even after its 51% shareholder Tata Sons acquired Air India. Recently, Tata Sons and minority shareholder Singapore Airlines Group injected an additional INR5 billion rupees (USD65 million) into Vistara.

“The fact is that the shareholders have been supportive. Recently, there has been an infusion of funds. What happens eventually is something that is under discussion by the shareholders. My message to the staff is very clear. We are still Vistara – an independent, separate airline. We are taking another 20 aircraft in the next two years. So, let’s focus on that,” he said.