World Economy

Airbus to Sell 250 A320neo to India’s IndiGo

Airbus to Sell 250 A320neo to India’s IndiGoAirbus to Sell 250 A320neo to India’s IndiGo

Indian budget carrier IndiGo has agreed to buy 250 single-aisle A320neo aircraft from Airbus, the companies said on Wednesday, potentially marking the largest number of jets ever sold by the European planemaker in a single order.

The deal would be worth $25.7 billion at list prices, although airlines typically get a discount and the memorandum of understanding between the two must still be confirmed as firm orders, Reuters reported.

IndiGo, India’s largest airline, was close to placing a large order worth billions of dollars for a variety of aircraft as it looks to expand in one of the world’s fastest growing aviation markets.

Like in many countries in Asia, India’s air passenger market has expanded at breakneck speed. IndiGo is the sole airline among the four biggest currently operating in India to consistently report profits.

This new order reaffirms IndiGo’s commitment to the long-term development of affordable air transportation in India and overseas, AFP quoted airline president Aditya Ghosh as saying.

IndiGo has a fleet of 83 Airbus A320s and has ordered or taken delivery of 280 Airbus aircraft, including 160 of the upgraded and re-engined A320neo model that will begin arriving next year. It was one of the first customers for the A320neo.

The provisional deal extends Airbus’s lead over Boeing in the Indian market and could, if confirmed in coming months, close a worldwide deficit in orders versus its US rival during the first nine months of the year.

IndiGo may also buy smaller regional planes and widebody long-haul jets, in addition to the narrowbody A320s, industry sources told Reuters on Tuesday.