IndiGo, India’s leading airline in terms of market share, is on the verge of finalizing a groundbreaking deal with Airbus to acquire 500 narrow-body A320-family jets, according to sources within the industry. This prospective order would surpass Air India’s provisional purchase of approximately 470 jets earlier this year, positioning IndiGo at the forefront of the aviation market.
Although the estimated value of this agreement stands at around $50 billion, based on the most recent Airbus list prices, industry analysts anticipate that the final value will likely be significantly lower due to substantial discounts offered by airlines for bulk purchases.
Notably, Airbus and Boeing are currently engaged in separate negotiations with IndiGo, vying for the opportunity to sell 25 A330neo or Boeing 787 wide-body jets to the same airline.
Pieter Elbers, the Chief Executive of IndiGo, refrained from commenting on commercial matters while attending the annual meeting of the International Air Transport Association in Istanbul. Likewise, representatives from Airbus and Boeing declined to provide any official statements.
IndiGo, which commands a commanding 56% share of the domestic Indian market, had been engaged in discussions with both Airbus and Boeing for this monumental order. If confirmed, it would be the largest order placed by a single airline in terms of unit volume.
Notably, IndiGo’s potential new order comes at a time when it has yet to take delivery of nearly 500 jets from its existing order of 830 Airbus A320-family planes. As one of the European group’s most significant customers, IndiGo’s order backlog underscores its ambitious growth plans.
During the recent airline industry event in Istanbul, the head of a global airline consortium exerted pressure on aircraft manufacturers to expedite plane and parts production. The executive warned that delays could impede airline capacity at a time when demand for air travel is steadily recovering from the pandemic’s impact.
Airbus and Boeing have attributed delivery delays to supply chain challenges, while bottlenecks in the engine repair shop network have compelled airlines to ground numerous aircraft. Given these circumstances, both aircraft manufacturers have been securing multi-billion dollar orders extending beyond 2030, as airlines seek to secure supplies well in advance amid looming shortages.
[Source: Information gathered from Reuters]