India’s largest airline IndiGo’s board is likely to approve an order for 500 Airbus A320 Neo family aircraft on Monday. At list price, the order is worth over $50 billion, though the actual amount is likely to be much less as such large orders enjoy heavy discounts.
The A320 Neo family consists of the A320Neo, A321Neo and A321 XLR aircraft.
The order will be the largest in the history of aviation topping Air India’s order of 470 aircraft placed in March. IndiGo has pending delivery of 477 aircraft of the same A320 family by 2030. This order will ensure that the airline gets an uninterrupted supply of new aircraft in the next decade as it expands its fleet.
IndiGo, which has over 60% of India’s domestic market, has leveraged its expanding and large fleet to launch new flights to capture a disproportionate market share as rivals struggled.
“The airline wants to ensure delivery slots so that fleet size remains steady. It will retire around 100 aircraft by 2030 and needs fresh planes to maintain the targeted fleet size of over 700 in the coming decade,” said a person aware of the development.
IndiGo refused to comment on the order.
Airlines have placed a slew of new aircraft orders following a sharp recovery in air travel after Covid, filling up order books at Airbus and Boeing.
A global supply chain disruption has delayed the production of new aircraft resulting in carriers having to wait until the end of the decade to get delivery of A320Neo aircraft - the most popular single-aisle aircraft.
Read more at: https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/indigo-to-take-a-call-on-big-order-today/articleshow/101089755.cms
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