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Airbus A320neo
Image: Reuters/Regis Duvignau

Airbus-IndiGo deal

October 15, 2014

European plane maker Airbus has signed a huge deal with low-cost operator IndiGo, India's biggest airline. The contract involves the sale of hundreds of the fuel-efficient A320neo aircraft to boost IndiGo's fleet.


Airbus Group said Wednesday it had signed a draft agreement with IndiGo on the sale of 250 A320neo passenger jets.

If completed, the deal would be worth around $25.7 billion (20 billion euros) at list prices and would represent the biggest individual sale ever by Airbus in terms of aircraft units.

"This new order reaffirms IndiGo's commitment to the long-term development of affordable air transportation in India and oversees," IndiGo President Aditya Ghosh said in a statement.

Important market player

IndiGo is India's largest airline with a market share of 32.6 percent. The carrier currently offers 540 daily flights connecting 36 domestic and international destinations.

The carrier flies only Airbus A320-series aircraft, of which it currently has 84 in service. The narrow-body jet first flew in 1987.

The A320neo is the latest version of the A320, and made its first test flight in September. It is scheduled to enter service late next year. Airlines have placed orders for more than 2,000 of the planes.

IndiGo's latest agreement adds to an existing order of 180 A320neo planes to expand its fleet and make it more fuel-efficient. Those jets will enter service with the airline in 2016.

Airbus has recently been able to top US rival Boeing in terms of orders, but is still lagging behind with regard to production volumes. Boeing's next-generation 737 MAX jet has also received more than 2,000 orders.

hg/sgb (dpa, AFP)

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