LE BOURGET—Indian LCC IndiGo announced a follow-up firm order for another 500 Airbus A320neo family aircraft June 19 at the Paris Air Show, one of the largest deals in Airbus history.
The aircraft are to be delivered from 2030 to 2035.
The deal “speaks to the potential of Indian aviation,” IndiGo CEO Pieter Elbers said. “It takes us into the next decade. The Indian market is one of the fastest growing in the world.”
IndiGo wants to make “air travel affordable for as many Indians as possible,” Elbers said. “The order will help us to plan well ahead. In your professional career you have a couple of days you never forget. This is one of them.”
Airbus Chief Commercial Officer Christian Scherer said the deal symbolized “the enormous potential of the Indian market.” With the latest firm order, IndiGo has commitments in place for 1,330 Airbus aircraft. The split between A320neos, A321neos and A321XLRs has not been decided yet.
IndiGo also did not comment on what engine type it plans to operate. IndiGo has a mixed fleet of CFM International and Pratt & Whitney engines.
IndiGo operates 21 A320s, 166 A320neos and 85 A321neos. The airline also has a fleet of 35 ATR regional turboprops. From previous orders it still expects to take delivery of 172 A320neos and 305 A321neos. The airline has around a 55% share of the Indian domestic market, followed by the new Air India (including Vistara) with around 17%. IndiGo serves 78 domestic destinations, according to a recent investor presentation, and flies to 26 markets abroad.
The airline’s growth ambitions are very ambitious. Even before the latest Airbus order, the airline aimed at doubling its fleet by 2030. In its fiscal 2023, which ended March 31, the airline offered 18% more capacity than in 2019, having continued to take delivery of new aircraft in the coronavirus pandemic. The fleet is expected to grow to around 350 aircraft by the end of its fiscal 2024. The number of annual passengers is expected to grow from 85 million to 100 million annually.
IndiGo has reportedly been planning to order 20-25 Boeing 787s to boost its presence in international and long-haul markets, but Elbers declined to comment on that. As part of the Airbus orders, IndiGo is taking a large fleet of Airbus A321XLRs, though it is not disclosing exact figures.
According to the Aviation Week Network’s Fleet Discovery, the airline has already committed to 70 XLRs in previous deals, the first of which are due to be delivered in the second quarter of 2024 with deliveries from earlier orders spanning to 2032. The XLRs allow IndiGo to open routes to destinations in all of Europe and Asia, given the aircraft’s 4,700 nm maximum range.
Separately, Saudi LCC Flynas firmed up an order for more A320neo family aircraft. The airline now has firm orders in place for 120 A320neo family aircraft, which include 10 A321XLRs. Also, Air Mauritius ordered three more A350-900s. The airline already has a fleet of four and four A330s.
