Tata Sons and Singapore Airlines (SQ, Singapore Changi), the two joint-venture partners in India's Vistara (UK, Delhi International), have agreed to inject an additional INR5 billion rupees (USD70.5 million) into the carrier to fund its accelerated expansion, the Business Standard has reported.
The injection is earmarked to help Vistara grow at a more rapid pace, taking advantage of the vacuum in the market left by the collapse of Jet Airways (JAI, Mumbai International). The promoters hope that by expanding the full-service carrier they will also propel it towards profitability. In the last financial year, ending June 30, 2019, Vistara lost INR8.3 billion (USD117 million).
Tata Sons and Singapore Airlines, which hold a 51% and a 49% stake in the carrier, respectively, last boosted Vistara's coffers in April 2019, injecting INR9 billion (USD127 million) in total.
In the wake of Jet's collapse, Vistara added eight B737-800s to its fleet which also includes thirteen A320-200s and ten A320-200neo. While the steady growth of the carrier's Airbus narrowbody fleet and its international expansion were planned ahead, the addition of Boeing jets was an opportunistic move that presented additional capital requirements.
