IndiGo places firm order for 500 planes with Airbus

In one of the largest-ever aircraft purchases by an airline, IndiGo on Monday announced placing a firm order to buy 500 narrow-body planes from Airbus as the airline embarks on an ambitious long-term growth path.

The multi-billion dollar deal comes less than five months after Air India placed orders for 470 aircraft with Airbus and Boeing. The latest order by IndiGo is the largest-ever aircraft order placed by any airline with Airbus. Financial details of the order were not disclosed. The aircraft purchase agreement was signed between the airline and Airbus at the Paris Air Show 2023. The latest order will provide IndiGo a further steady stream of deliveries between 2030 and 2035, the airline said in a release.

Also read: BYJU’s lays off close to 1,000 employees across all departments

Currently, IndiGo operates more than 300 aircraft. It has previous orders totalling 480 aircraft, which are yet to be delivered. This IndiGo order book comprises a mix of A320NEO, A321NEO and A321XLR aircraft, it said. During an online media briefing from France after the announcement of the order for 500 aircraft, IndiGo CEO Pieter Elbers said this is a historic moment for Indian aviation and speaks of the future of India and IndiGo. “IndiGo is further defining its long-term future, well into the next decade, by placing a firm order for 500 Airbus A320 Family aircraft. This will provide IndiGo a further steady stream of deliveries between 2030 and 2035,” the airline said.

According to the release, the evaluation of the offers was shared and discussed with its board, and consequently endorsed. This new order will bring the strategic relationship between IndiGo and Airbus to an unprecedented depth and breadth, the company said. “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,” Christian Scherer, Chief Commercial Officer and Head of International at Airbus, said in a separate release. “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,” Elbers said.

With this new order, since its inception in 2006, IndiGo has ordered a massive total of 1,330 aircraft with Airbus. 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, the airline said. Without disclosing the financial details of the latest order, the IndiGo chief said there is a planning horizon for 10 years and the airline can work on the long-term vision of the Indian government. IndiGo said the fuel-efficient A320NEO Family aircraft will allow it to maintain its strong focus on lowering operating costs and delivering fuel efficiency with high standards of reliability. The engine selection for this order will be done in due course and so will be the exact mix of A320 and A321 aircraft.