Low-cost carrier IndiGo placed the single biggest order with Airbus on June 19. IndiGo has placed an order for 500 aircraft. This deal took place at the Paris Air Show. It would be the largest order by an Indian airline surpassing the Tata-owned Air India’s mega order of 470 aircraft with Airbus and Boeing, which took place earlier this year.
IndiGo sealed this deal with Airbus at around $50 billion, and the airline also got a significant discount. The airline got this discount because of its impeccable credentials, huge order size, and long-standing relationship with Airbus. Notably, the airline purchased its first 100 aircraft from Airbus 18 years ago.
This historic deal was signed during the Paris Air Show 2023 by the IndiGo team, led by promoter & MD Rahul Bhatia, with the Airbus team, led by CEO Guillaume Faury.
The airline is currently operating around 310 aircraft and has a significant domestic market share of 60 per cent. As per IndiGo’s CEO Pieter Elbers, by 2030, the airline will double its fleet. According to the statement given by the airline, “This new order will bring the strategic relationship between IndiGo and Airbus to an unprecedented depth and breadth. With this new order, since its inception in 2006, IndiGo has ordered a massive total of 1,330 aircraft with Airbus.”
The statement added, “The fuel-efficient A320NEO family aircraft will allow IndiGo to maintain its strong focus on lowering operating costs and delivering fuel efficiency with high standards of reliability. The young and fuel-efficient fleet will help IndiGo realise its sustainability ambitions, building on the already realised CO2 reduction of 21% between FY16 and FY23”.
As per the reports, the 500 planes will be a mix of A320neo (new engine option), A321neo and A321XLRs (extra-long range). The Indian airline is expected to receive the delivery of planes between 2030 and 2035. IndiGo may strike a deal with CFM or Pratt & Whitney for engines.
Elbers stated, “An order-book now of almost 1,000 aircraft well into the next decade, enables IndiGo to fulfill its mission to continue to boost economic growth, social cohesion and mobility in India. This order strongly reaffirms IndiGo’s belief in the growth of India, in the A320 Family and in our strategic partnership with Airbus.”
Chief Commercial Officer and Head of International at Airbus, Christian Scherer, said, “This landmark order marks a new chapter in Airbus and IndiGo’s relationship that is democratising affordable air travel for millions of people in the world’s fastest growing aviation market. We look forward to contributing to the growth of India’s air connectivity in its domestic network and into international markets through the expansion of this formidable partnership.”
This huge order will eclipse Air India’s recent order of 470 aircraft in February this year. The Tata-owned airline has placed a multi-billion deal with the Airbus of France and Boeing of the United States almost equally. Under this deal, the company will buy 250 aircraft from Airbus and 220 from Boeing.
Tata Sons and Air India Chairman N Chandrasekaran had commented on the company’s ambitious fleet expansion. He said, “Air India is on a large transformation journey across safety, customer service, technology, engineering, network and human resources. Modern, efficient fleet is a fundamental component of this transformation. This order is an important step in realising Air India’s ambition, articulated in its Vihaan.AI transformation program, to offer a world-class proposition serving global travellers with an Indian heart.”
He said, “These new aircraft will modernise the airline’s fleet and onboard product, and dramatically expand its global network. The growth enabled by this order will also provide unparalleled career opportunities for Indian aviation professionals and catalyse accelerated development of the Indian aviation ecosystem.”
Air India’s press release had stated, “The first of the new aircraft will enter service in late-2023, with the bulk to arrive from mid-2025 onwards. In the interim, Air India has already started taking delivery of 11 leased B777 and 25 A320 aircraft to accelerate its fleet and network expansion.”
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