IndiGo orders 500 Airbus planes in largest-ever civil aviation deal
IndiGo, India's leading airline by market share, has unveiled plans to acquire 500 Airbus aircraft. With a list price of $55 billion, this deal marks the highest-ever civil aviation order and represents the largest single aircraft purchase made by any airline from Airbus.
Why did IndiGo choose Airbus?
IndiGo has been operating Airbus A320 family aircraft since its inception in 2006. The airline currently has 264 aircraft in operation (162 A320neo, 79 A321neo, 21 A320ceo and 2 A321 freighters), making it the world's largest A320 family customer.
The A320 family offers best-in-class operating economics, fuel efficiency, environmental performance and passenger comfort. The aircraft can fly up to 7,400 km and accommodate up to 240 passengers in a single-class configuration.
IndiGo's 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 1000 aircraft well into the next decade, enables IndiGo to fulfil its mission to continue to boost economic growth, social cohesion and mobility in India. At IndiGo, we take pride in being India's preferred airline for connectivity in and with India; and by doing so, being one of the leading airlines in the world. This order strongly reaffirms IndiGo's belief in the growth of India, in the A320 family and in our strategic partnership with Airbus."
What are the benefits of this deal for India and the world?
This deal is a major boost for India's aviation sector, which is expected to grow at an annual rate of 15% over the next decade. India is projected to become the third-largest aviation market by 2030, with more than 500 million passengers per year.
The deal will also create thousands of jobs and opportunities for suppliers, service providers and engineers in India and abroad. Airbus has a strong presence in India, with more than 7,000 employees across various divisions. The company also sources components worth $650 million annually from Indian suppliers.
Airbus's CEO Guillaume Faury said, "This landmark order marks a new chapter in Airbus and IndiGo's relationship that is democratising affordable air travel for millions of people in the world's fastest growing aviation market. It is also a resounding endorsement of the A320 family's best-in-class operating economics that have been powering IndiGo's growth for almost two decades. We cherish our long-standing relationship with IndiGo and are proud of our success together. We look forward to contributing to the growth of India's air connectivity in its domestic network and into international markets through the expansion of this formidable partnership."
How does this deal compare with other aviation deals?
This deal surpasses the previous record for the largest civil aviation order by number of aircraft, which was held by Air India when it placed a provisional order for 470 jets from Boeing and Airbus earlier this year. The table below shows some of the other notable aviation deals in history:
| Airline | Manufacturer | Number of aircraft | Year | Value (approx.) |
| --- | --- | --- | --- | --- |
| IndiGo | Airbus | 500 | 2023 | $55 billion |
| Air India | Boeing/Airbus | 470 | 2023 | $40 billion |
| Lion Air | Boeing/Airbus | 380 | 2011/2013 | $35 billion |
| American Airlines | Boeing/Airbus | 460 | 2011 | $38 billion |
| Emirates | Boeing/Airbus | 200 | 2013/2019 | $99 billion |
What are the challenges and opportunities for IndiGo?
IndiGo faces several challenges in executing its ambitious expansion plan, such as securing financing, managing delivery schedules, maintaining operational efficiency, enhancing customer service, complying with regulatory norms and coping with competition.
However, IndiGo also has many opportunities to leverage its scale, network, brand and innovation to capture new markets, increase market share, diversify revenue streams, improve profitability and create value for its stakeholders.
IndiGo has already announced plans to launch flights to London, Paris, Frankfurt and other European destinations by 2024 using its A321neo aircraft. The airline also aims to increase its domestic and regional presence by connecting more Tier-II and Tier-III cities in India and neighbouring countries.
IndiGo's vision is to be the world's best air transportation system, and this deal is a significant step towards achieving that goal.
Conclusion
IndiGo's order for 500 Airbus planes is a historic milestone for the Indian aviation industry and a testament to the strong partnership between the two companies. The deal will enable IndiGo to pursue its long-term growth strategy and offer affordable, reliable and comfortable air travel to millions of customers in India and beyond. The deal will also have positive impacts on the economy, employment, trade and tourism in India and the world. IndiGo is well-positioned to become one of the world's leading airlines and a pioneer in the global aviation market.
Source:
(1) IndiGo orders 500 Airbus planes in largest-ever civil aviation deal. https://www.dailypioneer.com/2023/page1/indigo-orders-500-airbus-planes-in-largest-ever-civil-aviation-deal.html.
(2) India’s IndiGo places record order for 500 A320 Family aircraft - Airbus. https://www.airbus.com/en/newsroom/press-releases/2023-06-indias-indigo-places-record-order-for-500-a320-family-aircraft.
(3) IndiGo-Airbus deal major win for UK aerospace, says PM Rishi Sunak. https://www.msn.com/en-in/news/other/indigo-airbus-deal-major-win-for-uk-aerospace-says-pm-rishi-sunak/ar-AA1cOLcc.
(4) IndiGo shares rise after airline orders 500 Airbus A320 aircraft in mega deal. https://www.zeebiz.com/markets/stocks/news-indigo-share-price-nse-today-target-bse-history-2023-new-aircraft-deal-order-flights-latest-news-update-240781.
(5) Largest-ever deal: IndiGo orders 500 Airbus A320 family aircraft worth $50 billion. https://www.msn.com/en-in/news/other/largest-ever-deal-indigo-orders-500-airbus-a320-family-aircraft-worth-50-billion/ar-AA1cKkhP.
(6) Airbus wins record 500-plane order from India's IndiGo | Reuters. https://www.reuters.com/business/aerospace-defense/airbus-wins-historic-500-plane-indigo-order-2023-06-19/.
FAQ's
How many aircraft were initially ordered by IndiGo?
IndiGo placed a firm order for 100 Airbus A320-200 aircraft in June 2005 with plans to begin operations in mid-2006. IndiGo took delivery of its first aircraft on 28 July 2006, nearly a year after placing the order. It commenced operations on 4 August 2006 with a service from New Delhi to Imphal via Guwahati.
What is the IndiGo airline famous for?
We primarily operate in India's domestic air travel market as a low-cost carrier with focus on our three pillars – offering low fares, being on-time and delivering a courteous and hassle-free experience.
What is Airbus most sold plane?
A320 A320 | The most successful aircraft family ever | Aircraft | Airbus Aircraft.
Which aircraft operated by IndiGo Airlines?
IndiGo operates the Airbus A320 CEO & NEO, the A321 NEO and the ATR 72-600 aircraft. The seating capacity on the A320 CEO fleet is 180 , A-320 NEO fle... Read More... IndiGo operates the Airbus A320 CEO & NEO, the A321 NEO and the ATR 72-600 aircraft.
