“India’s largest airline, IndiGo set to Finalize Deal for 500 Airbus A320 Jets, surpassing previous records. The estimated $50 billion agreement, along with talks for wide-body jets, highlights the airline’s expansion plans amidst a rebound in India’s travel market. Find out more!”
Industry sources reveal that Airbus is on the verge of securing a monumental deal with IndiGo, India’s largest airline, for the purchase of 500 narrow-body A320-family jets. This agreement, if confirmed, would overshadow Air India’s record provisional purchase of 470 jets in February, solidifying Airbus as the leading contender. The estimated value of the deal stands at approximately $50 billion, based on Airbus’ recent list prices. However, industry experts anticipate that the actual worth would be significantly lower, considering the customary discounts provided for bulk orders within the airline industry.
Additionally, talks are underway between Airbus and Boeing regarding the potential sale of 25 A330neo or 787 wide-body jets to IndiGo. Should these negotiations bear fruit, it would further cement IndiGo’s position as the recipient of the largest single carrier order in history. Notably, IndiGo has already placed an order for 830 Airbus A320 planes, with nearly 500 yet to be delivered, establishing the airline as one of Airbus’ most significant customers.
As the demand for aircraft surges and airlines strive to secure their supplies in the face of imminent shortages, Airbus and Boeing are witnessing a surge in new orders that extend beyond the year 2030. Turkish Airlines recently announced its intention to purchase 600 jets; however, no immediate progress was made during the IATA meeting.
According to a recent report by Barclays, Indian carriers possess the second-largest backlog in the industry, second only to the United States. However, concerns have been raised regarding airlines potentially overordering jets in their pursuit of the same pool of passengers. Lufthansa Group CEO, Carsten Spohr, emphasized that supply currently outweighs global demand, despite the high fares prevalent in the industry.
IndiGo’s ambitious plans coincide with the rebound of travel in India, the world’s third-largest aviation market. Alongside expanding its network, the airline aims to double its capacity by the end of the decade. IndiGo has also entered into codeshare agreements with seven airlines, including Turkish Airlines, American Airlines, and KLM. Its partnership with Turkish Airlines has facilitated its expansion into Europe, a favored destination for Indian tourists. Presently, IndiGo operates flights to 33 European airports. Recently, the airline commenced international operations in Istanbul, utilizing its first wide-body aircraft, a Boeing 777, which was provided by codeshare partner Turkish Airlines, along with their skilled pilots.
