IndiGo Orders 500 Airbus Planes In Biggest Aircraft Deal Ever

IndiGo, India’s largest airline, placed a 500-aircraft order estimated at $50 billion with European planemaker Airbus SE at the Paris Air Show today, surpassing the recent 470-aircraft record order of Air India in March.

The order is for the A320NEO family of aircraft and will ensure a steady stream of jets for the low-budget carrier to power its next decade of growth. The airline, which has over 60% domestic market share, already has nearly 500 aircraft in the delivery pipeline.

The order will ensure a steady stream of jets between 2030 and 2035, the airline said in a press release.

IndiGo's now 1,000-strong order book comprises a mix of A320NEO, A321NEO, and A321XLR aircraft.

The order underlines the airline’s ambitions to grow rapidly, both in the domestic and international markets, in the world's fastest-growing aviation market. It currently flies to 26 international and domestic destinations.

"We are looking to double in size and scale by the end of this decade—in other words, something that took us around 16 years will now be achieved in less than half of that timeframe," Pieter Elbers, chief executive officer of the airline, said in an investor call.

The latest order will ensure a steady supply of aircraft for IndiGo beyond 2030, even as the pending order book will ensure it doubles its fleet by the end of the decade, along with replacing some of the older aircraft. The current fleet stands at over 300 planes.

Global supply chain issues have disrupted the production of new aircraft, with airlines having to wait until the end of the decade to get delivery of orders placed years ago.

A post-Covid boom in air travel has also led to several orders from carriers, leaving the major aircraft manufacturers with their hands full.

While Air India’s order in March was divided between Airbus and the other aircraft manufacturing giant, Boeing, IndiGo limited its order to Airbus to maintain uniformity in its fleet. The uniformity of the fleet has been a key reason for the airline’s lower costs, as it requires less diversity in engines, spare parts, and talent.

Reportedly, Boeing may win a separate order for 25 widebody aircraft from IndiGo.