Vistara (UK, Delhi International) is looking at renegotiating contracts with service providers, such as maintenance companies, in order to reduce its unit costs amid the ongoing price war in India, PTI newswire has reported.
"We are not immune to the external operating environment. Our larger aircraft size, including what we will be bringing in the next couple of years, will give us the avenue to renegotiate some of the contracts we have," CEO Leslie Thng told reporters.
In July 2018, the Singapore Airlines/Tata Group joint-venture inked a Letter of Intent (LoI) with Airbus for thirteen A320neo and A321neo with a further seven options, and with Boeing for six B787-9s with a further four options for B787 jets. The carrier also said it would lease thirty-seven A320neo from lessors.
Thng also said that the airline undertook internal restructuring to optimise the costs and increase revenues. It is also deploying new technologies which would boost productivity.
Vistara, a full-service carrier, currently operates thirteen A320-200s and eight A320neo. The airline tentatively planned to debut on international routes later this year, although a delay over route allocations is now likely.
