Indian airline IndiGo has set a new record in the commercial aviation industry by ordering 500 Airbus A320 aircraft, marking any airline’s largest single purchase agreement to date.
The deal, valued at approximately $55 billion, was announced at the Paris Airshow. With this order, IndiGo’s total aircraft order book with Airbus now stands at 1,330.
The deliveries of the newly ordered aircraft are scheduled between 2030 and 2035. According to the company, IndiGo aims to leverage these deliveries to enhance its operational efficiency, reduce costs, and improve fuel efficiency.
This move is expected to position the budget carrier for significant growth in the coming years.
India’s aviation market is thriving, and experts predict it may surpass China as the next major growth frontier for the aerospace industry.
The country’s economy is projected to be the fastest-growing among G20 nations, and there has been a notable increase in first-time flyers since the pandemic.
The growth potential remains substantial, as less than 5% of India’s population of 1.4 billion have ever traveled by air.
Rising disposable incomes have contributed to a considerable surge in air traffic within the country.
IndiGo’s massive order follows other notable aircraft purchases in India, including Tata Group’s order for 250 Airbus planes earlier this year and Air India’s order for 470 aircraft from both Airbus and Boeing.
This latest agreement highlights the resurgent confidence in the airline industry after the pandemic, with low-cost carriers like IndiGo making ambitious moves to expand their fleets.
While IndiGo’s order stands out as the most remarkable at the Paris Airshow, more orders are expected as airlines race to revamp their fleets and capitalize on the rebounding market.
However, aircraft manufacturers face challenges in meeting the increased demand due to supply chain disruptions stemming from the Covid-19 pandemic.
