India‘s largest airline by market share, IndiGo has announced expansion of fleet with a record aircraft order after it announced the deal with Amercian plane-maker Airbus to order a massive 500 aircraft order, largest ever in the history of aviation industry. The order topples the 470 aircraft order placed by another Indian carrier Air India last year. With close to 1,000 aircraft on order books from India, the country’s aviation industry is expected to get a huge boost in the coming decade.
Further defining its long-term future, well into the next decade, by placing a firm order for 500 A320 Family aircraft, IndiGo aims to take its fleet size to 1,000 aircraft over next 10 years. Deliveraries from the new order will start flowing in from 2030 up till 2035.
This 500 aircraft order is not only IndiGo’s largest order, but also the largest-ever single aircraft purchase by any airline with Airbus. IndiGo said that the engine selection for this order will be done in due course and so will be the exact mix of A320 and A321 aircraft.
IndiGo currently operates over 300 aircraft and has previous orders totaling 480 aircraft which are yet to be delivered between today and the end of this decade. With this additional firm order of 500 aircraft for 2030-2035, IndiGo’s order-book has almost 1.000 aircraft yet to be delivered well into the next decade. This IndiGo order-book comprises a mix of A320NEO, A321NEO and A321XLR aircraft. IndiGo has ordered a massive total of 1,330 aircraft with Airbus since 2005.
The fuel-efficient A320NEO Family aircraft will allow IndiGo to maintain its strong focus on lowering operating costs and delivering fuel efficiency with high standards of reliability. The young and fuel-efficient fleet will help IndiGo realise its sustainability ambitions, building on the already realized CO2 reduction of 21 per cent between FY16 and FY23, the airline said in a statement.
As the chair-elect of the International Air Transport Association (IATA) Board of Governors, Elbers will play a pivotal role in further shaping the global aviation landscape, advocating for the industry’s interests, and driving innovation and sustainability initiatives. Effective June 2024, he will succeed present Chair, Yvonne Manzi Makolo, the CEO of Rwandair.
The historic purchase agreement was signed by Rahul Bhatia, Promoter & Managing Director of IndiGo, Dr Venkataramani Sumantran, Chairman and Non-Executive Independent Director of IndiGo, Pieter Elbers, CEO of IndiGo, Guillaume Faury, Airbus CEO, and Christian Scherer, Airbus Chief Commercial Officer and Head of International, at the Paris Air Show 2023 on June 19. On the ocassion, Elbers said, “It is difficult to overstate the significance of IndiGo’s new historic order for 500 Airbus A320 Family aircraft. An orderbook now of almost 1.000 aircraft well into the next decade, enables IndiGo to fulfill 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.”
“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”, said Christian Scherer, Chief Commercial Officer and Head of International at Airbus.
New Delhi-headquartered IndiGo is among the fastest growing carriers in the world.
ICRA’s outlook on the Indian aviation industry has been revised to Stable from Negative in the recent past, on the back of fast-paced recovery in domestic passenger traffic in FY2023 and expected continuation of the same in FY2024. Moreover, the industry witnessed improved pricing power, as reflected in the improved yields and thus the revenue per available seat kilometre – cost per available seat kilometre (RASK-CASK) spread of the airlines.
