Airbus SE, the European aircraft manufacturer, and the Boeing Company, the US-based aerospace firm, have combined the orders of 19 jets of Singapore Airlines’ Indian unit.
The airline aims to commence international flights with the new jets to increase local operations, Bloomberg reports.
The subsidiary, which is known as Vistara, is set to purchase 13 of the A320neo and A321neo jets that are valued at $111mn respectively, in addition to six Boeing 787-9 Dreamliners for approximately $282mn each.
The carrier confirmed in a statement on Wednesday that the combined order is priced at $3.1bn which excludes customary discounts.
Leslie Thng, Chief Executive Officer of Vistara, stated: “This order is very important for Vistara because we always felt that international operations will give us a leverage on further improving our financial performance”.
The airline, which offers services in three classes, operates in Asia which has been considered one of the most expensive aviation markets in the world.
Despite jet fuel being the most expensive in Asia, fierce competition has meant that fares can be as low as 2 cents.
With Asia being a populous continent of 1.2bn people, the market has seen carriers such as Singapore Air, Etihad Airways and AirAsia search for local partners in a bid to compete against budget airlines such as IndiGo and SpiceJet.
The statement also confirms that leasing companies will be offering 37 new A320neo family aircraft to the airline to rent, to add to its canon of 21 single-aisle Airbus planes.