Singapore Airlines-Tata Indian joint venture orders Airbus A320s: Sources

Singapore Airlines' new Indian joint venture with Tata Sons has chosen Airbus A320 aircraft over Boeing's 737 to launch its operations in the country, sources familiar with the decision said.

An A380 aircraft under construction at an EADS factory in Toulouse, France
Pascal Parrot | Getty Images

A project team set up by Singapore Airlines evaluated both aircraft and decided to go with the European plane, the two sources said.

The full-service carrier will get up to 20 A320s worth $1.83 billion at list prices. The planes will be sourced from leasing companies, rather than purchased direct from Airbus.

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A Singapore Airlines spokesman referred queries to the joint venture's office in India, while an Airbus spokesman in Singapore said: "We do not comment on commercial discussions with existing or potential customers."

The new airline is expected to begin operations in the second half of this year.