‘Every dollar invested in civil aviation…,’ Scindia on IndiGo-Airbus deal’s impact on Indian economy

IndiGo’s agreement with Airbus to procure 500 A320 aircraft has been hailed as a significant milestone for India by civil aviation minister Jyotiraditya Scindia. The Narendra Modi government’s minister on Tuesday expressed confidence that this investment will yield fruitful outcomes in terms of employment opportunities within India.

“India has set another landmark with this largest-ever recorded order by a carrier with any aircraft manufacturer in the world,” Scindia told ANI news agency.

‘Every direct job in civil aviation results in 6.1 indirect jobs in the sector’

Expressing optimism for the employment prospects associated with the deal, the minister added, “Every dollar invested in civil aviation yields $3.1 in terms of new growth, as well as the employment multiplier. Every direct job in civil aviation results in 6.1 indirect jobs in the sector. And therefore, there are tremendous dividends that accrue from the ever-expanding civil aviation sector.”

IndiGo, the country’s largest airline, on Monday, inked a 500 A320 planes deal with Airbus in what is reported to be the largest order in the history of commercial aviation. (ALSO READ: IndiGO’s Airbus order: These are other mega commercial aviation deals)

“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 1,000 aircraft well into the next decade, enables IndiGo to fulfil its mission to continue to boost economic growth, social cohesion and mobility in India”, Pieter Elbers, IndiGo CEO said in a statement.

“This order strongly reaffirms IndiGo’s belief in the growth of India, in the A320 Family and in our strategic partnership with Airbus”, he added.

IndiGo expanding its fleet

At present, IndiGo manages a fleet of more than 300 aircraft, with an existing 480 aircraft order that is scheduled for delivery by 2030. Adding to this, the recently confirmed order of 500 aircraft for the period of 2030-2035 brings IndiGo’s total order book to nearly 1,000 aircraft.

IndiGo’s order book includes a combination of A320NEO, A321NEO, and A321XLR aircraft.

Around 1,700 planes placed on order by Indian airlines

Currently, the country has roughly 700 commercial aircraft. While Air India, IndiGo, Akasa Air, Go First, and Vistara have each ordered a total of around 1,700 planes. (ALSO READ: Air India inks massive deals for Airbus, Boeing aircraft)