India’s largest airline with
domestic market share of 38% has given order for 250 Airbus A320neo single-aisle
jets for about $26.6bn at list price. Although typically, customer gets
discounts on such bulk size orders. This is biggest order in the history of
European company Airbus till date, deliveries are expected to begin in 2018.
For Airbus, backlog for A320neo planes now stands at 4,100.
Indigo which is looking at fast
growing aviation market by offering affordable fares and efficient service. Since
its inception in 2006, Indigo has overtaken bigger names such as Jet,
Kingfisher and Air India in last few years to establish command over Indian
market. During 2005 Indigo ordered 100 A320s, all of them delivered. While in
2011, Indigo placed ordered for 180 planes worth $15bn to be delivered in
phases till. With recent order of 250
A320neo, Indigo’s Airbus fleet size would reach 530 aircrafts. With newer
aircrafts fitted with more efficient engines and large Sharklet wing-tip
devices, Indigo expects fuel savings of 20% by 2020.
European giant Airbus gets big
boost with this order and its long term relationship with market leader. Indian
aviation market is expected to post robust growth in coming years and expected
to order at least 1,290 new aircrafts by 2032 valued at $190bn. While India’s
market leader, Indigo, looking at strengthening its presence in low cost carrier
(LCC) market
and preparing itself for competition from new entrants like AirAsia and
Singapore Airlines. The company is planning an IPO in near future to raise
$500mn which could value Indigo at $4bn. The only profitable airline in Indian
market is expected to improve its market share beyond 40% in the current fiscal
as competition is facing losses and mounting debts.
#Indigo #Airbus #A320 #Airline #India
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