Singapore Airlines invests over SGD 100 mn in Vistara

Singapore Airlines (SIA) has invested more than SGD 100 million in Indian carrier Vistara, twice the amount initially planned, a daily reported.The airline is "encouraged" by Vistara's performance so far but an SIA spokesman declined to confirm funding details, citing commercial confidentiality, according to The Straits Times.

Profits are not expected until 2020 at the earliest but the New Delhi-based carrier, which has been flying domestically for more than two years, is growing nicely, the Singapore daily cited analysts as saying.

In June next year, the 49-per cent SIA owned Vistara will collect its 20th aircraft, a significant milestone which will pave the way for the airline to operate international flights.Tata Group owns the rest 51 per cent stake in joint venture



airline.

Under Indian civil aviation rules, Vistara must have at least 20 planes before it can fly outside the country.The launch of international flights is a key part of SIA's strategy to expand its own reach and reduce the dominance of Middle Eastern carriers which have a strong hold on the growing India-Europe and India-United States markets.

When SIA and Tata first announced in 2013 the intention to launch Vistara, the plan was for a joint USD100 million investment.

The financing has since more than doubled on the back of high operating costs in India, stiff competition from other Indian carriers that has prompted steep fare cuts, and costs associated with plans to go international, reports out of India have suggested.