New Delhi: IndiGo on Monday announced that it has placed an order of 500 aircraft with Airbus – the largest order by an airline in global aviation history, surpassing Air India’s order of 470 new aircraft placed in February this year.
“IndiGo… is further defining its long-term future over the next decade by placing a firm order for 500 Airbus A320 Family aircraft. This will provide IndiGo with a more steady stream of deliveries between 2030 and 2035,” the company, which largest indian airline by market share, said in a statement.
IndiGo said the order for 500 aircraft is not only its largest order but also the largest single aircraft ever purchased by any airline with Airbus.
“The engines for this order will be selected in due course and will therefore be an exact mix of A320 and A321 aircraft,” it said.
While the company did not announce the size of the deal, it is estimated to be worth $50 billion at list value, according to industry estimates. The actual amount is likely to be much less as airlines get significant discounts on bulk orders.
Currently, IndiGo operates over 300 aircraft and has back orders for a total of 480 aircraft which will be delivered by the end of this decade.
“With this additional firm order of 500 aircraft for 2030-2035, IndiGo has almost 1,000 aircraft in its order-book that are yet to be delivered well into the next decade,” the company said. Airbus “to an unprecedented depth and breadth”.
The purchase agreement was signed on Monday at the Paris Air Show 2023 in the presence of IndiGo Board Chairman V. Sumanthran, IndiGo CEO Peter Albers, Airbus CEO Guillaume Faury and Airbus Chief Commercial Officer and Airbus Head Christian Scherer. international.
IndiGo CEO Albers said, “It is difficult to overstate the importance of IndiGo’s new historic order for 500 Airbus A320 Family aircraft.”
“An order book of around 1.000 aircraft over the next decade now enables IndiGo to fulfill its mission to promote economic growth, social cohesion and mobility in India… This order strongly demonstrates IndiGo’s belief in India’s growth confirms, in the A320 family and our strategic partnership with Airbus,” he said.
The company said it hopes to welcome 100 million customers by the end of this year.
Rival airline Air India – owned by the Tata group – in February was announced That it will buy 250 aircraft from Airbus and 220 from US-based Boeing. While the airline did not disclose the value of the deal, it is estimated to be around $80 billion.
Meanwhile, research agency Crisil Ratings said in a report released on Monday that the revenue of domestic maintenance, repair and overhaul (MRO) service providers in the aviation sector expected to triple From around Rs 1,800 crore to Rs 5,500-6,000 crore by FY2028, driven by factors such as airline fleet expansion, favorable policies and ongoing investments in airports.
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