Mega Aviation Deal: IndiGo Places Order For 500 Planes With Airbus

Budget carrier Indigo on Monday announced placing a firm order for 500 A320 family planes with European aviation major Airbus at the Paris Air Show. This is the largest ever aircraft order placed by any airline with Airbus, IndiGo said in a statement.

The aircraft purchase agreement was signed between the airline and Airbus at the Paris Air Show 2023. This (order) will provide IndiGo a further steady stream of deliveries between 2030 and 2035, the Gurugram-based airline said.

IndiGo stated, "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 airline emphasised that the fuel-efficient A320NEO Family aircraft will enable them to maintain a strong focus on lowering operating costs and achieving high standards of fuel efficiency and reliability.

IndiGo CEO Pieter Elbers said, "It is difficult to overstate the significance of IndiGo's new historic order for 500 Airbus A320 Family aircraft. 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."

Elbers further added, "This order strongly reaffirms IndiGo's belief in the growth of India, in the A320 Family, and in our strategic partnership with Airbus.''

Currently, IndiGo operates more than 300 aircraft. It has previous orders totalling 480 aircraft, which are yet to be delivered, as per the airline. This IndiGo order book comprises a mix of A320NEO, A321NEO and A321XLR aircraft, the airline said.

''With this additional firm order of 500 aircraft for 2030-2035, IndiGo's order book has almost 1,000 aircraft yet to be delivered well into the next decade,'' the airline said in a release.

The IndiGo order book comprises a mix of A320 NEO, A321 NEO and A321 XLR aircraft.

IndiGo is already one of Airbus's largest customers, and the new order would bring its total commitment to the European planemaker to over 1,300 aircraft. The airline is expected to use the new jets to expand its domestic and international networks.

Here are some of the key details of the deal:

• The order is for 500 A320-family jets, which includes the A320neo, A321neo, and A321XLR.
• The deal is worth an estimated USD 50 billion at list prices, but it is likely that IndiGo will receive a significant discount.
• The order is a major boost for Airbus, which has been locked in a fierce battle with Boeing for market share in India.