IndiGo places largest-ever single order for planes, to buy 250 Airbus

Discussion in 'Economy & Infrastructure' started by Srinivas_K, Oct 15, 2014.

  1. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    IndiGo places largest-ever single order for planes, to buy 250 Airbus A320neo aircraft

    NEW DELHI: India's largest domestic airline, IndiGo, has placed the single largest order ever for narrowbody aircraft by signing an agreement with Airbus for 250 A-320neo (new engine option) planes.

    The list price for each of these planes is $102 million, putting the collective list price of IndiGo order at a whopping $25.5 billion.

    The low cost carrier (LCC) had earlier placed orders for 280 A-320s and the new MoU is over and above the previous order.

    IndiGo founders signed the MoU with Airbus, which described it as the European aircraft manufacturer's "single largest order by number of aircraft".



    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 courteous, hassle free service to more customers and markets and will create more job opportunities and growth. The IndiGo team is energised and excited to herald this new phase of our growth."


    [​IMG]

    Airbus president Fabrice Bregier said: "The A320neo continues to dominate world market share and this commitment confirms the A320 Family as the aircraft of choice in the most dynamic aviation growth markets. We thank IndiGo and its co-founders for their tremendous vote of confidence."

    The A320neo "new engine option" incorporates many innovations, including latest generation engines and large Sharklet wing-tip devices, which together deliver 15% in fuel savings.

    IndiGo places largest-ever single order for planes, to buy 250 Airbus A320neo aircraft - The Times of India

    India's aerospace sector is expanding :thumb:
     
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  3. sob

    sob Moderator Moderator

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    Where have the earlier 280 nos. gone. indigo does has around 80 Aircraft flying today in Indian skies.
     
  4. ezsasa

    ezsasa Senior Member Senior Member

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    They are yet to start receiving the order.
     
  5. SajeevJino

    SajeevJino Long walk Elite Member

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    .

    Nice to hear an Indian Firm Taking a Bigger Leap in his Carrier
     
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  6. ninja85

    ninja85 Regular Member

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    what happened to earlier 280 planes order.
     
  7. sob

    sob Moderator Moderator

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    So now the total orders on Airbus are for 430 Aircraft. Does not make any sense.
     
  8. Neil

    Neil Senior Member Senior Member

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    they are in full expansion drive... International plus domestic

    those 280 orders will start arriving these year.. 100 A320CEO and 180 A320 NEO.. the recent order delivery will start from 2018.

    also they are planning sale and leaseback option...
     
  9. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    kingfisher is gone so the INdigo have some good routes to operate and make profit
     
  10. sob

    sob Moderator Moderator

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    These aircraft can be used only in domestic sectors or in the immediate neighbourhood-- gulf routes/SE Asia countries. No way that Indigo can absorb so many aircraft. The amount of infrastructure, the number of crews that will be required, is stupendous.

    Indigo has been taking delivery of between 8 to 14 aircraft in a year. In the recent past they have even agreed to defer delivery in return for payment so that Airbus could divert the aircraft to other airlines. They would be following this model in the future also.

    One of the reasons for large order is that Indigo does not own any of it's aircrafts. It sells the aircraft on delivery with a lease agreement, back to back. This way they are able to keep the average age of their crafts to under 3 years. Before the aircraft has to undergo expensive checks and certification they let it go for a brand new aircraft- this keeps the maintenance costs extremely low. The average age of aircrafts at AI would be around 8years +. But even with all the expansion and buybacks 280+250 is huge.
     
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  11. sob

    sob Moderator Moderator

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    Re: IndiGo places largest-ever single order for planes, to buy 250 Air

    On the domestic routes the profit margins are very low. The money is on the overseas routes only. Also with Air Asia and Tata/SIA coming in, profitability is going to take a hit.
     

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