IndiGo breaks Air India record of single largest aircraft order with 500 Airbus planes

Low-cost carrier IndiGo has made the single largest aircraft order ever made by an airline in history. On Monday, June 19, at the Paris Air Show, IndiGo ordered 500 aircraft from French aerospace giant Airbus. This mega order breaks the record of Air India, which had finalised a deal for 470 aircraft with Airbus and Boeing in total. 

IndiGo's order for 500 aircraft is Airbus's single largest order with a single airline ever. The order ensures IndiGo will get a steady stream of deliveries between 2030 and 2035. The order is worth nearly $55 billion before any discounts. 

IndiGo's orders so far comprises A320NEO, A321NEO, and A321XLR aircraft.

In contrast, Air India's order was worth $150 billion. But so far, there are no details available on IndiGo's exact number of A320 and A321 aircraft and the engine selection. 

.@Indigo6E & Airbus making history at #ParisAirShow with a deal for 500 #A320neo Family aircraft. The biggest single purchase agreement in the history of commercial aviation will contribute to democratising affordable & efficient air travel in India. https://t.co/0vbRdZ8kQS pic.twitter.com/m7goSdOhoQ

— Airbus Newsroom (@AirbusPRESS) June 19, 2023

How many aircraft does IndiGo have in its fleet?

• With 500 more aircraft scheduled for deliveries between 2030 and 2035, IndiGo will have about 1280 aircraft in total. 
• With the Airbus order, IndiGo has become the largest A320 family customer. 

Today we have set another truly momentous and very exciting step in the journey of IndiGo as we placed a firm order for 500 Airbus of the A320 Family. This is the largest-ever single aircraft purchase by any airline with @Airbus. #goIndiGo pic.twitter.com/8ix3TSivIT

— IndiGo (@IndiGo6E) June 19, 2023

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What does it mean for IndiGo?

• The new deliveries will help IndiGo cut down its operating costs and improve fuel efficiency. 
• IndiGo is also trying to expand its presence in international destinations and the new deliveries will help it achieve its goals. IndiGo is already India's largest domestic airline. 
• IndiGo and Air India's massive aircraft orders are all in line with the expectation of India replacing China as the next big growth frontier in the aviation market. 
• Recently, the DGCA gave IndiGo and Vistara the go-ahead to operate new international flights starting in August.
• Some observers also speculate whether IndiGo is trying to "squat" on Airbus' production line. Meaning, any other airline which wants an A320 family aircraft between 2030 and 2035 will need to pay IndiGo a commission fee for their delivery slot. 

.Incidentally the intended target of this preemptive slot blocking is @airindia. 6E anticipated AI’s need for A320s and have locked down all the delivery slots. So Tatas will have to send Chandrasekaran begging to 6E with lots of money.

— Abhijit Iyer-Mitra (@Iyervval) June 19, 2023

• Indian Airlines aren't the only ones expanding their fleet. Irish low-cost carrier Ryanair and Saudi-based Riyadh Air have also recently made large aircraft orders. 
• However, aircraft manufacturers face supply chain issues following the pandemic, rising costs, parts shortages, and a lack of skilled labour. 

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