Indian budget carrier IndiGo said on Monday (June 19) that it had ordered a record 500 A320 planes from French manufacturer Airbus. The latest purchase has eclipsed Air India’s purchase of 470 jets earlier this year and has set a new record. The multi-billion dollar purchase is the largest ever by number of aircraft.
The deal has come through 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.
AFP reported that the list price is USD 55 billion. Closely-held actual sale prices are normally lower. This deal is the largest ever in civil aviation.
The planes will be delivered between 2030 and 2035.
The order also makes IndiGo Airbus’ largest customer for A320 planes. IndiGo is racing to expand as travel rebounds in India in the post-pandemic period.
IndiGo, a no-frills carrier, is one of India’s largest domestic flight operators. India was the world’s fastest-growing air passenger market before the coronavirus pandemic.
The previous record-holder for the largest single order was Air India. In February 2023, Air India ordered 470 aircraft. The carrier had placed orders with Airbus and also with its US competitor Boeing.
A June 1 report by Barclays says that Indian carriers now have the second-largest order book and have a six per cent share of the industry backlog, behind only the US.
IndiGo accounts for about 60 per cent of India’s domestic aviation market. The carrier was widely expected to keep Airbus as its supplier of single-aisle jets.
Indian carriers now have the second-largest order book, with an over six per cent share of the industry backlog, behind only the United States, according to a June 1 report by Barclays.
But some analysts have expressed concern that airlines could be over-ordering jets in pursuit of the same passengers.
Reuters said, quoting sources, that IndiGo is holding separate talks with Airbus and rival Boeing for 25 widebody planes. These would either be Airbus A330neos or Boeing 787 jets.
(With inputs from agencies)
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