Indian low-cost carrier IndiGo and Airbus are reportedly close to reaching a potentially record-breaking agreement for 500 A320 family aircraft, according to industry sources cited by Reuters. The order could be officially announced during the upcoming Paris Air Show.
Back in February, the news agency reported that the operator was negotiating the purchase of “hundreds” of aircraft from the European manufacturer. If finalized, it would mark another mega-order from an airline in the Asian country.
According to experts, the deal would have a value of 50 billion dollars, based on Airbus’ latest published catalog prices. However, as is customary in such cases, a significant discount can be expected.
See also: IndiGo and Airbus negotiate an order for “several hundred aircraft”
IndiGo to order more Airbus A320 family aircraft
Currently, the company led by Dutchman Pieter Elbers (former CEO of KLM from 2014 to 2022) has a fleet of nearly 300 aircraft, most of which are Airbus A320, A320neo, and A321neo models.
IndiGo is already one of Airbus’ largest customers, having placed a total order for 830 aircraft and still awaiting the delivery of around 500. The finalization of this new order would further strengthen the relationship between the two companies and solidify Airbus’ dominance over its biggest competitor, Boeing, in India.
Moreover, it would provide a fresh boost to the country’s aviation market, one of the most promising ones in the world. IndiGo holds a market share close to 60% and is the largest operator in the country.
Air travel activity and competition in India have intensified in recent months. Currently, the demand for both domestic and international travel has reached levels close to those recorded before the start of the pandemic. Projections indicate that this trend will continue in the near future.
See also: IndiGo makes history as it receives its first Boeing 777-300ER
