MIAMI — Indian budget carrier IndiGo has confirmed a previous Memorandum of Understanding (MoU) signed in October 2014 for 250 Airbus A320neo aircraft, with an estimated value of $27 billion based on list prices.
Airbus informed in an e-mailed statement today that the order, the biggest ever by number of aircraft, has catapulted its backlog to over 4,100 single-aisle Airbus family jetliners.
In 2005, the New Delhi-based airline placed an initial order for 100 A320s, which have all now been delivered. Currently, the carrier has an all-Airbus fleet, comprised by 95 aircraft.
“It fills us with pride that IndiGo, India’s largest airline and one of the early launch customers for the A320neo, is coming back for more of our benchmark aircraft. This order confirms the A320 Family as the airliner of choice in the most dynamic aviation growth markets.” said John Leahy, Airbus Chief Operating Officer Customers.
The announcement of the Indian carrier confirms the expansion plans, intended to keep its leading role in the local market with now almost 40 percent share. Aditya Ghosh, President of IndiGo said, “This new order reaffirms IndiGo’s commitment to the long-term development of affordable air transportation in India and overseas,” aligned with the regional trend of other budget carriers in the region, which are expanding rapidly to serve a burgeoning middle class in a fast-growing environment.
IndiGo growth in India has been challenged by the entry of Air Asia India and Vistara Airlines -a joint venture of Tata Sons and Singapore Airlines-, new players in a market in which profits are elusive. This year, Jet Airways and Spicejet have reported losses, while Kingfisher Airlines has remained in ground since 2012 with $1.4 billion in debts.