IndiGo finalizes $26.55 billion purchase of 250 new Airbus A320 Neo jets

[Ryuzaki]

MUMBAI: IndiGo, the country's biggest airline by market share has placed a firm order for 250 Airbus A320neo (new engine option) planes, the plane maker's biggest order by volume.

At list prices, the total order size equals $26.55 billion. However the actual deal value will likely be much less, thanks to the high number of planes ordered.

"With today's announcement, IndiGo has ordered 530 A320 Family aircraft with Airbus," the airline and the plane maker said in identical statements, put out simultaneously. The agreement was signed on Saturday. Neither the airline nor manufacturer clarified the delivery schedule for the planes.

IndiGo had in 2005 placed an order for 100 A320s and in 2011 for another 180, then the biggest aircraft order in aviation history in terms of volume.


IndiGo, which is gearing up for an IPO later this year, had signed a memorandum of understanding (MoU) or a provisional agreement to buy the 250 Airbus planes in October, 2014. In its recent pre-IPO prospectus, it clarified the terms of the MoU had lapsed but it remained in talks with Airbus for a significant order.


IndiGo has historically followed a business model of placing mammoth plane orders to ensure aggressive growth as well as major discounts on pricing, lease rentals and maintenance costs. For instance, the airline's maintenance cost per available seat kilometre for the FY2014 was $0.18 while it was $0.34 for Air India, $0.35 for GoAir, $0.90 for SpiceJet and $0.95 for Jet Airways, according to its DRHP. These cost cuts, with a robust operational performance have helped the airline to clock consist ..

Read more at:
IndiGo finalizes $26.55 billion purchase of 250 new Airbus A320 Neo jets - The Economic Times

 

[Bombaywalla]

This order would take the fleet size to over 350 aeroplanes.

 

[[Bregs]]

Please don't go kingfisher way and increase fleet size rationally

 

[Agent_47]

How do they finance this big money ? #justcurious

 

[Viny]

How do they finance this big money ? #justcurious

A good question to ask, when our neighbour is finding hard to raise its Forex upto $20bn from last 60+years, here we have a private airline with age of less than 10yrs is making an order of $25bn

Generally in aviation industry, the orders of such nature goes for a decade or more and companies buying the plane sells it again and then take it back on lease model, a funny but working model

 

[Chanakya's_Chant]

Airbus outsources A320 family jet components from India. Airbus outsourcing from India has recorded 12x growth since 2006 - During PM's last visit to France - Airbus announced $2 billion cumulative outsourcing from India up from the current $400 million. Now with the purchase finalization of these jets - the outsourcing value is also expected to increase substantially.

​

#MakeInIndia Airbus Announces $2 Billion Cumulative Outsourcing From India By 2020

Airbus's Largest-ever deal by number of aircraft till date and by the order value this is only second to the one placed by Emirates for A380's.

Airbus confirms largest airplane order by number - Airbus Group SE ADR (OTCMKTS:EADSY) | Seeking Alpha
IndiGo order 2nd largest for company: Airbus India - Moneycontrol.com

 

[danish_vij]

This order would take the fleet size to over 350 aeroplanes.

if i am not wrong while i was travelling in indigo in 2014 their brochure in plane claimed they already have some(or ordered) 150 A320's or i might have misread something


so if i am right then this takes them to 400 total

 

[crimemaster_gogo]

A good question to ask, when our neighbour is finding hard to raise its Forex upto $20bn from last 60+years, here we have a private airline with age of less than 10yrs is making an order of $25bn

Generally in aviation industry, the orders of such nature goes for a decade or more and companies buying the plane sells it again and then take it back on lease model, a funny but working model

Hi vini hope u understand it's a Pakistani forum and no comparisons shall be made when it puts our neighbours in bad light. They are where they belong, we are now where we should be, ya on the right track of progress.


On topic: Frequent flyers my question to you, which is the best domestic airways in India? For me Indigo is one of the best and spice jet is the worst (minimum leg room).

 

[Bombaywalla]

On topic: Frequent flyers my question to you, which is the best domestic airways in India? For me Indigo is one of the best and spice jet is the worst (minimum leg room).

Jet Airways (9W), which starts wide body A330 domestic ops from IGI T3 and CSIA T2 soon, and Indigo (6E). Air India is very good too IMHO, especially on their new 787 Dreamliner domestic services.

if i am not wrong while i was travelling in indigo in 2014 their brochure in plane claimed they already have some(or ordered) 150 A320's or i might have misread something


so if i am right then this takes them to 400 total

400 is better than 350; that's for sure! I made that comment keeping in mind their previous order (at Le Bourget) which stood at a 100 aeroplanes. I could be wrong, though.

 

[danish_vij]

Jet Airways (9W), which starts wide body A330 domestic ops from IGI T3 and CSIA T2 soon, and Indigo (6E). Air India is very good too IMHO, especially on their new 787 Dreamliner domestic services.



400 is better than 350; that's for sure! I made that comment keeping in mind their previous order (at Le Bourget) which stood at a 100 aeroplanes. I could be wrong, though.

yes so whatever it is its better than 100/150 though if i think it was 150 prev.....anyways..thats a a huge order 250 i sill dont know whether they need 250 more........
hough A320's are great for domestic short flights

 

[crimemaster_gogo]

Jet Airways (9W), which starts wide body A330 domestic ops from IGI T3 and CSIA T2 soon, and Indigo (6E). Air India is very good too IMHO, especially on their new 787 Dreamliner domestic services.

Thanks Mr. Bombaywalla, I appreciate ur contribution to "India developing and a long way to go thread".

P.S. I am a banned member, so I don't have access to thanks button

 

[samv]

That's $26.55 billion down a nice big hole.

 

[Bombaywalla]

yes so whatever it is its better than 100/150 though if i think it was 150 prev.....anyways..thats a a huge order 250 i sill dont know whether they need 250 more........
hough A320's are great for domestic short flights

The aviation market in this country is growing by leaps and bounds despite certain articles that one comes across from time to time, stating the contrary. Indigo's operating model is quite different from the other airlines in India, ergo the massive order. I feel like Indigo should now start their own MRO facility for their A320s.

Thanks Mr. Bombaywalla, I appreciate ur contribution to "India developing and a long way to go thread".

P.S. I am a banned member, so I don't have access to thanks button

Appreciate your appreciation, mate.
Regarding your banning: it happens to the best of us especially on a forum such as this one.

 

[Ryuzaki]

Thanks Mr. Bombaywalla, I appreciate ur contribution to "India developing and a long way to go thread".

P.S. I am a banned member, so I don't have access to thanks button

how can banned poster post?

 

[SRP]

That's $26.55 billion down a nice big hole.

Whose hole ?