IndiGo on Wednesday placed an order for 250 single-aisle aircraft, valued at $25.70 billion (Rs.1.50 lakh crore), at $102.8 million per aircraft.
The airline and its two co-founders U.S.-based NRI Rakesh Gangwal and InterGlobe Enterprises’ Group Managing Director Rahul Bhatia entered into an MoU with Airbus SA to buy 250 Airbus A320neo Family aircraft.
“This order reaffirms IndiGo’s commitment to the long-term development of affordable air transportation. 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,” IndiGo President Aditya Ghosh said in a statement.
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IndiGo President Aditya Ghosh has said that the airline’s order of 250 Airbus A320neo aircraft, “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,” he said in a statement.
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“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,” said Airbus President and CEO Fabrice Brégier.
Engine selection for this order is not expected to be made in the near future.
This is the biggest ever aircraft order placed by IndiGo as well as by any Indian carrier. In mid- 2005, a year before its launch, IndiGo had placed an order for 100 Airbus A320ceo aircraft, taking everyone in the aviation industry by surprise. It was only due to the involvement of Mr. Gangwal, the Kolkata-born former CEO and Chairman of U.S. Airways Group in IndiGo that Airbus agreed to take that order from a start-up, low cost airline.
In 2011, IndiGo placed another large order for 180 A320neo aircraft, valued at $15 billion. At present, IndiGo has a fleet of 83 A320s and operates 540 daily flights.
The large aircraft order is to get aircraft at competitive prices to meet its ambitious growth plans as well as to take on competition from new entrants and incumbent airlines.
IndiGo is the only profitable airline from India and reportedly made a profit of Rs.317 crore last year.
The induction of A320neo aircraft is expected improve its profitability.