NEW DELHI - Vistara, the new airline by Singapore Airlines (SIA) and India's Tata group, will begin operations with two Airbus A320 aircraft, before increasing the fleet to five by end-March and 20 in four years' time.

Mr Yeoh Phee Teik, chief executive of Tata SIA Airlines, the joint venture that will operate the new airline, told reporters this at a press conference in New Delhi on Monday where the airline unveiled the look of its cabin, CNBC reported.

Vistara will be the first full-service carrier in India to offer premium economy seating and a value-based frequent flyer programme where bonus points are given based on actual spending on tickets, not on miles flown.

Based in New Delhi, the carrier will start flying from Jan 9. It opened for bookings on Dec 18 for flights between the capital Delhi and financial capital Mumbai, as well as the western city of Ahmedabad.

It will operate 148-seater Airbus A320-200 with 16 seats in business class, 36 in premium economy and 96 in economy.

It has plans to offer 17 special meals on request 24 hours prior to departure.

Once it takes off, Vistara will be the third full service carrier after state-run Air India and Jet Airways, NDTV reported.

The airline plans to launch a lounge in Delhi's Terminal 3 airport early next year.