IndiGo to buy 500 jets from Airbus
Written by Sanjay Kumar
IndiGo
Airline
- Hubs: Indira Gandhi International Airport, MORE
- Founders: Rahul Bhatia, Rakesh Gangwal
- Founded: August 2006
- Headquarters: Gurugram
- Destinations: 101
News Highlights
- Airbus to finalize record-breaking deal with IndiGo for 500 A320-family jets.
- Indian airlines hold second-largest order book globally, showcasing industry growth.
- IndiGo’s partnerships enable flights to 33 European airports, meeting the demand for European travel.
According to sources cited in a Reuters report, Airbus, the European aircraft manufacturer, is on the verge of finalizing a groundbreaking deal with IndiGo, an Indian airline, to sell 500 A320-family narrow-body jets. If this agreement is completed, it will surpass the provisional purchase of 470 jets made by Air India in February.
IndiGo, which has already ordered a total of 830 Airbus A320-family planes, is still awaiting the delivery of nearly 500 jets. Barclays’ report from June 1 states that Indian airlines now hold the second-largest order book, comprising more than 6% of the industry backlog, trailing only behind the United States. However, analysts estimate that the actual value of the deal would be significantly lower than the published Airbus list prices, potentially around $50 billion after accounting for industry discounts.
The report also reveals that Airbus and Boeing are engaged in separate negotiations to sell 25 wide-body jets, either A330neo or Boeing 787, to the same airline.
IndiGo currently commands a 56% share of the domestic Indian market and aims to double its capacity by the end of the decade. During earnings call last month, IndiGo’s Chief Executive, Pieter Elbers, expressed the airline’s intention to expand its network, particularly in international markets. IndiGo has formed codeshare partnerships with seven carriers, including Turkish Airlines, American Airlines, and KLM. Through its collaboration with Turkish Airlines, IndiGo has made significant inroads into Europe, now offering flights to 33 European airports, as Europeans are a favored choice for Indian travelers.
The demand for new aircraft from Airbus and Boeing has been skyrocketing, with orders stretching beyond 2030, as airlines strive to secure supplies well in advance to mitigate potential shortages in the future.
In conclusion, the potential record-breaking deal between Airbus and IndiGo for the sale of 500 A320-family jets signifies the continued growth and influence of Indian airlines in the global aviation industry. This deal, along with Indian airlines holding the second-largest order book worldwide, highlights the country’s significant presence and increasing importance in the industry.
Furthermore, IndiGo’s strategic partnerships have allowed the airline to expand its network and offer flights to numerous European destinations, catering to the demand of Indian travelers. As the aviation sector continues to thrive, these developments exemplify the ongoing evolution and success of both IndiGo and the broader Indian aviation market.
Must Read:-
- Top 10 Largest Oceans and Seas in the World
- Top 10 automobile companies in India 2023
- Top 10 Electrical Companies in India 2023
- Top 10 Real Estate Companies in India-2023
- Top 10 most awaited & upcoming Hindi web series 2023-24
- Top 10 Clothing Brands in India 2023
- Top 10 best cultures in the world-2023
- Top 10 best country to work and live in 2023
- Top 10 best country for education 2023
- Top 10 Most Followed Celebrities on Instagram 2023
- The Inspiring Success Story of Bear Grylls
- Top 10 Business Coaches in The World to Guide Entrepreneurs In 2023
- Top 10 movies based on True Stories you must watch before you die
- Top 10 Best Online Doctor Consultation Apps in USA
