IndiGo’s Mega Deal: 500 Airbus Jets Set to Soar High
According to Industry sources on Sunday, IndiGo, India’s largest airline by market share, is likely to close on a record deal to purchase 500 narrow-body A320-family jets from Airbus.
A source stated on the side-lines of a meeting of the Airline Industry in Istanbul that Airbus has emerged as the front-runner for the order, and that it will surpass Air India’s provisional purchase of nearly 470 jets in February. According to aircraft analysts, such a deal would be worth approximately $50 billion at the most recent Airbus list prices, but would typically be worth less than half this amount after widespread discounts for bulk deals offered by the airline industry.
According to them, Airbus and Boeing are also vying for the opportunity to sell 25 A330neo or Boeing 787 wide-body jets to the same airline in separate negotiations.
Pieter Elbers, IndiGo’s Chief Executive, declined to discuss business matters while in Istanbul for the International Air Transport Association’s annual meeting.
Boeing and Airbus both declined to comment.
IndiGo, which has a 56 percent share of the domestic Indian market, was in talks with both Boeing and Airbus regarding the order, which would be the largest order ever placed by a single airline in terms of units.
One of the European group’s largest customers, IndiGo has yet to receive nearly 500 of the 830 Airbus A320-family planes it ordered, making it eligible for a potential new order.
On Sunday, during the meeting of the airline industry in Istanbul, the head of a group that represents global airlines increased pressure on plane manufacturers to speed up production of planes and parts. He warned that delays would reduce airline capacity as demand for air travel nears a full recovery from the pandemic.
Delivery delays have been attributed by Airbus and Boeing to supply chains, and airline bottlenecks in a network of engine repair shops have also caused dozens of jets to be grounded.
As airlines secure supplies far in advance of anticipated shortages, Airbus and Boeing have been receiving billions of dollars in new orders that extend beyond 2030.
