Largest-ever deal: India’s IndiGo orders 500 Airbus A320 family aircraft worth $50 billion

IndiGo, an Indian low-cost carrier, announced on Monday (June 19) that it had ordered a record 500 Airbus A320 planes from the French manufacturer Airbus. This has surpassed Air India’s earlier this year acquisition of 470 planes and set a new record. The multibillion-dollar purchase is the largest in terms of aircraft count. The agreement was reached after months of negotiations.

“This is just the beginning, there’s more going forward. With the growth of India (and) the growth of the Indian aviation market … this is the right time for us to place this order,” Chief Executive Pieter Elbers told a news conference.

According to AFP, the list price is USD 55 billion. Actual sale prices that are closely held are typically lower. This is the largest deal in civil aviation history. The planes are scheduled to be delivered between 2030 and 2035. IndiGo is now Airbus’s largest customer for A320 planes. IndiGo is scrambling to expand as travel resumes in India following the pandemic.

India’s largest domestic carrier, IndiGo, considers purchasing widebody planes

IndiGo, India’s largest domestic flight operator, is a no-frills carrier. Prior to the coronavirus outbreak, India had the world’s fastest-growing air passenger market. Air India held the previous record for the largest single order. Air India has purchased 470 planes for February 2022. The airline had placed orders with both Airbus and its US counterpart Boeing.

According to a June 1 research by Barclays, Indian carriers now have the second-largest order book and a 6% share of the industry backlog, after only the US. IndiGo controls over 60% of India’s domestic aviation market. The airline was largely expected to keep Airbus as its single-aisle jet provider.

According to a June 1 study by Barclays, Indian carriers now have the second-largest order book, accounting for more than 6% of the industry backlog, trailing only the United States. However, other analysts are concerned that airlines may be purchasing too many planes to accommodate the same people. According to Reuters, IndiGo is in separate talks with Airbus and rival Boeing for 25 widebody planes. These would be either Airbus A330neos or Boeing 787 Dreamliners.

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