Vistara finalizes LEAP-1A engine order

Vistara, a joint venture of Tata Sons and Singapore Airlines, has finalized an engine order for 26 LEAP-1A engines to power 13 new Airbus A320neo aircraft, in addition to the 37 leased aircraft from the A320neo family, ordered in July 2018 and the ten leased aircraft already in service.

Alongside this engine order, Vistara has signed a long-term Rate Per Flight Hour (RPFH) agreement for the maintenance of the 120 LEAP-1A engines that power 60 Airbus A320neo and A321neo aircraft in service or in order. The combination of the RPFH agreement and the engine order is valued at more than US$2.4 billion at list price.

RPFH agreements are part of CFM’s portfolio of flexible aftermarket support packages. Under the terms of the agreement, CFM Services guarantees maintenance costs for the Vistara’s LEAP-1A engines on a dollar-per-engine-flight-hour basis.

The Delhi-based airline took delivery of the first LEAP-1A-powered Airbus A320neo in May 2017 and currently operates ten leased LEAP-1A-powered Airbus A320neo aircraft. As part of the airline’s aggressive expansion plan, Vistara will take delivery by the end of this month of its first LEAP-1A-powered A320neo aircraft out of the latest order.