Airbus and Indigo Sign Record Deal Saturday Aug 15,2015

 

Indian carrier IndiGo signed an agreement to purchase 250 narrow-body A320 Neo (new Engine Option) planes worth over USD 25.5 billion, as per list prices and more than the GDP of several countries including Afghanistan and Nepal, with European manufacturer Airbus

IndiGo placed record 250 aircraft orders with Airbus, keeping in mind the growth potential in India in the next decade or so
India is a very under-penetrated market. Around 8.4 billion people travel through trains and less than one per cent of them fly

The aircraft purchase agreement with Airbus was signed on Saturday Aug 15,2015 IndiGo said in a statement

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

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

 IndiGo as one of India's only airline to consistently deliver profits and prosper even as Kingfisher Airlines and SpiceJet died or struggled, relies on a complex sale-and-lease structure to buy its fleet.

Note

Founded by travel entrepreneur Rahul Bhatia and Rakesh Gangwal, a former chief executive of U.S. Airways, IndiGo launched its service in 2006

InterGlobe Aviation Ltd., the owner of IndiGo, is planning for an initial public offering, which could raise about $500 million valuing it at $4 billion, six-and-a-half times more than its nearest competitor Jet Airways and 18 times that of SpiceJet