New Delhi: India’s largest domestic airline, IndiGo will buy 250 A320neo planes from Airbus Group in a deal worth $25.5 billion (Rs. 1.53 lakh crore at 60 rupee per dollar). This would be Airbus’ largest order on number of aircraft, IndiGo said in a statement on Tuesday.
IndiGo President Aditya Ghosh said,”This new order reaffirms IndiGo’s commitment to the long-term development of affordable air transportation in India and overseas. The additional aircraft will enable us to continue to bring our low fares and hassle free service to more customers.”Â
It would also be IndiGo’s biggest purchase of aircraft till date. IndiGo, which competes with SpiceJet and GoAir in the domestic market, operates 83 A320 aircraft. In 2011, it had placed orders for 180 more, largely for the upgraded re-engined A320neo variants, with deliveries expected to begin early next year.
The airline has also inked a deal to take 12 A320s from Singapore’s Tiger Airways on lease. These aircraft will allow IndiGo to retire its older aircraft and keep the average age of its fleet to around six years, helping to keep operating costs down.
Airbus president Fabrice Bregier said: “The A320neo continues to dominate world market share. We thank IndiGo and its co-founders for their tremendous vote of confidence.”Â
The A320 neo “new engine option” incorporates many innovations, including latest generation engines and large Sharklet wing-tip devices, which together deliver 15% in fuel savings.Â
IndiGo is India’s largest airline by market share and has been reporting profits for the last six years. Its fortunes contrast with other carriers struggling in an Indian market that faces severe overcapacity.