IndiGo places firm order for 300 A320neo family aircraft; does not disclose deal value

Mumbai: Placing one of the single largest aircraft orders, IndiGo will buy 300 Airbus 320 neo family planes as the budget carrier continues with its ambitious growth plans. While the price details were not disclosed, the order would be worth over $33 billion (over Rs 2.3 lakh crore) on the basis of catalogue price of A320 neo plane that was published in 2018.

.@IndiGo6E says placed firm order for 300 A320neo family aircraft & this marks one of airbus’ largest aircraft orders ever w/a single airline operator. Order comprises mix of A320neo, 321neo & A321XLR aircraft & it takes IndiGo’s total no of A320neo family aircraft orders to 730 pic.twitter.com/6OifVmHGkW

— CNBC-TV18 (@CNBCTV18Live) October 29, 2019

IndiGo, the country’s largest airline in terms of market share, would induct long-range A321XLRs in addition to A320 neos and A321 neos. Announcing the firm order to purchase 300 more aircraft, IndiGo on Tuesday said it would be “one of Airbus’ largest aircraft orders ever with a single airline operator”. “This order is an important milestone. India is expected to continue with its strong aviation growth, and we are well on our way to serve more customers and deliver on our promise of providing low fares, among others,” IndiGo CEO Ronojoy Dutta said in a release. [caption id=“attachment_5335881” align=“alignleft” width=“380”] Representational image. Reuters[/caption] He noted that the airline has decided to induct long-range A32IXLRs as it “needs to extend the range of its operations” while the choice of engine manufacturer for the 300-plane order would be made at a later date. In recent months, IndiGo has launched services to a number of international destinations, including Istanbul, Riyadh, Ho Chi Minh, Chengdu and Yangon. With the latest order, IndiGo’s total number of A320neo family aircraft order now stands at 730. Between 2005 and 2015, the airline had placed, in three tranches, orders for 530 Airbus planes. The A321XLR responds to market needs for even more range and payload. The aircraft would deliver an unprecedented Xtra Long Range of up to 4,700 nm – with 30 percent lower fuel burn per seat compared with previous generation competitor jets, IndiGo said. “As we spread our wings and add more destinations, we need to extend the range of our operations and that is why we have added the A321XLR aircraft to our aircraft order,” Dutta said. Since its first A320neo aircraft was delivered in March 2016, the airline’s fleet of A320neo family planes has grown into the world’s largest with 97 such aircraft, operating alongside 128 A320ceos. “We are delighted that IndiGo, one of our early launch customers for the A320neo, continues to build its future with Airbus, making IndiGo the worlds biggest customer for the A320neo family,” Airbus CEO Guillaume Faury said. Airbus Chief Commercial Officer Christian Scherer said IndiGo has demonstrated the relevance of the A320neo for leading low-cost operators, and the A321neo – and now the A321XLR – provide our operators with the logical next step in cost efficiency, passenger comfort and market coverage. “We are pleased to partner yet again with Airbus for our next batch of Airbus A320neo family aircraft. The fuel-efficient A320neo family aircraft will allow IndiGo to maintain its strong focus on lowering operating costs and delivering fuel efficiency with high standards of reliability,” IndiGo Chief Aircraft Acquisition and Financing Officer Riyaz Peermohamed said. With its fleet of 247 aircraft, the airline offers close to 1,500 daily flights and connects 60 domestic destinations and 23 international destinations.