The Tata Group-Singapore Airlines (SIA) joint venture airline in India is planning to lease 20 Airbus A320 jets, as the carrier expects to enter operations towards the end of this year.
Although the official value of the deal has not been revealed, the aircraft are estimated to be worth nearly $1.8bn at list prices.
The Airbus A320 family includes of short-to-medium-range, narrow-body, commercial passenger jets, and has a capacity to accommodate up to 220 passengers.
Tata-SIA’s decision to lease A320 aircraft is expected to fortify Airbus’ position in India’s single-aisle aircraft segment.
Speaking on the deal, Tata-SIA senior executive Sanjay Singh told Hindustan Times that the aircraft are being leased from a Singapore-based leasing company.
"The decision to lease Airbus aircraft for the new airline was taken jointly by Tata-SIA in Mumbai," Singh noted.
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By GlobalDataDelivery of these jets will begin in June. The JV submitted application for a no-objection certificate to the aviation ministry in December last year.
It has also secured permit from the Foreign Investment Promotion Board in order to begin operations as a passenger airline in India.
Together, Tata-SIA will make an initial investment of $100m to set up the airline.
Tata Sons will have 51% ownership in the JV, while the remaining stake (49%) will be held by Singapore Airlines.
Image: The Airbus A320 family includes of short- to medium-range, narrow-body, commercial passenger jets. Photo: courtesy of S Ramadier/Airbus SAS.
