Indian budget airline IndiGo announced on Monday that it has placed an order for a record-breaking 500 A320 planes from French aircraft manufacturer Airbus. This purchase surpasses Air India’s earlier order of 470 jets, setting a new record for the largest-ever purchase in terms of the number of aircraft.
After months of negotiations, the deal has been finalized. IndiGo’s Chief Executive, Pieter Elbers, stated that this is just the beginning and that more orders are expected in the future, considering the growth of India and its aviation market.
The list price for the aircraft is reported to be USD 55 billion, although actual sale prices are usually lower. The delivery of the planes is scheduled between 2030 and 2035. This significant order also makes IndiGo Airbus’ largest customer for A320 planes, as the airline aims to expand rapidly in the post-pandemic period, with travel rebounding in India.
IndiGo, known for its no-frills service, is one of the largest domestic flight operators in India. Before the COVID-19 pandemic, India had the fastest-growing air passenger market globally.
Air India previously held the record for the largest single order with its purchase of 470 aircraft in February 2023. This order included planes from both Airbus and its competitor Boeing.
According to a report by Barclays on June 1, Indian carriers now have the second-largest order book in the industry, accounting for over six percent of the backlog, trailing only the United States.
While IndiGo is focused on Airbus for its single-aisle jets, sources suggest that the airline is also in separate talks with Airbus and Boeing for 25 widebody planes, potentially including Airbus A330neos or Boeing 787 jets. However, no final decision has been made regarding these widebody aircraft orders.
Some analysts have expressed concerns about airlines potentially over-ordering jets in their pursuit of passengers, but IndiGo’s expansion plans indicate their confidence in the future of the Indian aviation market.
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