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IndiGo to buy 250 Planes in Big Ticket Airbus Deal

Published: 16th October 2014 06:02 AM  |   Last Updated: 16th October 2014 07:45 AM   |  A+A-

Planes

NEW DELHI: Low-cost, no-frills air carrier Indigo on Wednesday placed a $25.5 billion order with top aircraft maker Airbus to acquire 250 of its state-of-the-art A320neo aircraft, in the largest-ever order to an European aircraft manufacturer thus far. At current list price, each aircraft would cost $102.8 million.

Launched in 2006, IndiGo, which has the largest domestic market share of 32.6 per cent, will deploy these new aircraft on its domestic and ever-expanding international routes.

In 2005, the airline had ordered 100 A320 aircraft and in 2011 followed it up with another 180 A320neo aircraft deal, which was the largest-ever order at that time.

Aditya Ghosh, president, IndiGo, in a statement said, “This new order reaffirms IndiGo’s commitment to the long-term development of affordable air transportation in India and overseas. The additional aircraft will enable us to continue to bring our low fares and courteous, hassle-free service to more customers and markets and will create more job opportunities and growth.”

“The IndiGo team is energised and excited to herald this new phase of our growth,” Ghosh added.

IndiGo’s co-founders, Rakesh Gangwal and Rahul Bhatia, who is also the group managing director of the airline’s parent firm InterGlobe Enterprises, signed a Memorandum of Understanding (MoU) placing orders for the 250 A320neo family aircraft at the Airbus headquarters in Toulouse, France. Airbus president and CEO Fabrice Brégier thanked IndiGo for “their tremendous vote of confidence”.

While IndiGo was not expected to select the engines for this new order “in the near future”, the A-320 Neo plane incorporates many innovations, including the latest generation engines and large Sharklet wing-tip devices, which together deliver 15 per cent in fuel savings, the statement said.

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