IndiGo, India’s largest airline, is likely to approve an order for 500 Airbus A320 Neo aircraft on Monday. The order is estimated to be worth around $50 billion, but the actual amount could be lesser due to discounts.
The order follows Air India’s mammoth order of 470 aircraft that was placed in March. If IndiGo’s deal follows through, it will be the largest order in aviation history.
According to a report in The Economic Times, IndiGo has a pending delivery of 477 airplanes of the same A320 family by 2030. This order means that the carrier would get an uninterrupted supply of aircraft in the next decade.
A person in the know told the financial daily that the airline wants to ensure delivery slots so that the fleet size remains same, as it is set to retire around 100 planes by 2030. It would require new planes to maintain the fleet size of 700 aircraft.
Carriers had to face delayed orders after a disruption in global supply. The A320 New aircraft are a popular choice for airlines who will now have to wait till the end of the decade for the delivery of the aircraft.
IndiGo is likely to order 300 longer-range A321 Neo and A321 XLR aircraft, which would be key to the airline’s expansion into Europe as these airplanes can operate up to 8 hours. IndiGo currently flies to 26 international destinations.
The report stated that IndiGo established its creditworthiness during COVID-19 pandemic when it did not default on any lease payments. Hence, the airline also expects an advantage in terms of lease rates.
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