NB Explains | A big boost to India's aviation? IndiGo seals the biggest-ever deal in aviation history, orders 500 Airbus planes

New Delhi, June 20: In a significant development, Indian airline IndiGo said on Monday (June 19) that it had ordered a record 500 A320 planes from French manufacturer Airbus. The multi-billion dollar purchase is the largest ever by number of aircraft.

 

 

 

No-frills airline IndiGo has placed an order for 500 A320 family planes with European aviation major Airbus at the Paris Air Show. This is also the largest ever aircraft order placed by any airline with Airbus, IndiGo said in a statement. The planes will be delivered between 2030 and 2035.

 

 

Financial details of the order were yet to be disclosed officially. But at list prices, the order is worth $55 billion — although the closely-held actual sale prices are usually lower for large orders.

 

 

The latest purchase has eclipsed Air India's purchase of 470 jets earlier this year and has set a new record. It had been the previous record-holder for the largest single order, at 470 aircraft in February 2022 at a list price of more than $70 billion — although that was split between Airbus and American competitor Boeing.

 

 

IndiGo, a no-frills carrier, is one of India's largest domestic flight operators. India was the world's fastest-growing air passenger market before the coronavirus pandemic.

 

IndiGo is racing to expand as travel rebounds in India in the post-pandemic period. Currently, IndiGo operates more than 300 aircraft. It has previous orders totalling 480 aircraft, which are yet to be delivered. This order will provide IndiGo a further steady stream of deliveries between 2030 and 2035, the Gurugram-based airline said. With this new order, since its inception in 2006, IndiGo has ordered a massive total of 1,330 aircraft with Airbus so far.

 

 

In the space of less than two decades, IndiGo has gone from a startup to the country's dominant carrier, with a market share exceeding 60%. Air India is also trying to capture some of the market potential, having reinvented itself under new ownership and a fleet purchase plan that underscores its ambition. Akasa, which began flying last year, also wants to elbow its way in — it's working to secure financing for a follow-on order with Airbus, Bloomberg reported.

 

And according to a June 1 report by Barclays, Indian carriers now have the second-largest order book, with an over six per cent share of the industry backlog, behind only the United States. A June 1 report by Barclays says that Indian carriers now have the second-largest order book and have a six per cent share of the industry backlog, behind only the US.

 

IndiGo accounts for about 60 per cent of India's domestic aviation market. The carrier was widely expected to keep Airbus as its supplier of single-aisle jets.