IndiGo orders 250 Airbus planes worth $26 billion; largest-ever single contract

New Delhi: In the largest global aircraft purchase, no-frills carrier IndiGo has placed an order for 250 planes worth nearly $26 billion with European manufacturer Airbus.

IndiGo’s order, also the biggest-ever in terms of number of aircraft, would be for 250 narrow-body A320 Neo (new engine option) planes.

The country’s leading low-cost airline, which is gearing up for an initial share sale, inked the aircraft purchase agreement with Airbus on August 15.

In October last year, IndiGo had signed an MoU to acquire 250 of the latest Airbus A-320 Neo aircraft worth nearly $26 billion or Rs 1.55 lakh crore, as per the list price.

The carrier had earlier, too, placed orders for 100 A-320s in 2005 and another 180 A-320 neos in 2011 worth about $11 billion, which was the largest-ever purchase at the time.

“The additional fuel efficient A320neo 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,” IndiGo President Aditya Ghosh in a statement.

IndiGo has already taken delivery of all 100 Airbus A320 planes which it had ordered in 2005, the airline said. With the latest acquisition, IndiGo has ordered a total of 530 A320 family aircraft.

“This order confirms the A320 family as the airliner of choice in the most dynamic aviation growth markets. We thank IndiGo and its co-founders, Rahul Bhatia and Rakesh Gangwal, for their tremendous vote of confidence,” said Airbus’ Chief Operating Officer for customers, John Leahy.

The A320 Neo comes with many features, including latest generation engines and large Sharklet wing-tip devices, which are 15% fuel-efficient from day one and 20% by 2020, the statement said.

IndiGo’s latest order also reflects high passenger potential in the Indian aviation market, which is projected to be among the top three in the coming years.