What IndiGo and Air India ordered at Paris Air Show shopping spree: A breakdown

Indian carriers, looking to dominate the skies, went on a shopping spree at the 54th edition of the Paris Air Show being held at the Paris Le Bourget Airport this year.

• Relying on a growing economy and a burgeoning middle class, IndiGo and Air India, who have placed orders for about 1,000 jets in total, are looking to serve the increased domestic appetite for air travel and capture a larger piece of the global market. According to reports, Akasa Air also placed an order for four more 737-8s at the air show, bringing their total order with Boeing from the original 72 to 76 aircraft in order to expand into foreign markets.

• According to the Centre for Aviation (CAPA), Indian domestic passengers are expected to reach 350 million by 2030, from 144 million in 2019.
• Likewise, overseas air travellers are expected to reach 160 million in 2030, from 64 million in 2019.

IndiGo's record deal

• It started with the Indian aviation giant IndiGo creating a stir with their huge order of 500 Airbus single-aisle aircraft (A320 family) worth $500 billion.
• A321XLRs with a range of 8,700 km are also included in the contract, and they will allow the airline's network to go further into Southeast Asia and European destinations.

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

• The order on Jun 19, 2023, became the largest-ever single aircraft purchase by any airline in the world. However, the engine (Pratt & Whitney or General Electric) has not been finalised yet.
• The jets are expected to be delivered in a phased manner between 2030 and 2035.
• This deal is above the airline's earlier deal of around 480 narrowbodies from Airbus.
• Also, IndiGo is in talks with both Airbus and Boeing, planning to buy around 25 wide-bodied aircraft, probably to fly to American destinations in the future.
• IndiGo's inclination towards narrowbody jets, specifically for short and medium-haul flights, has been particularly strong.

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

Air India's mega order

• The very next day (June 20), the Tata-owned Air India, to renew and expand its fleet, ordered a mix of 470 Airbus and Boeing jets. The deal was finalised for $70 billion.
• Among the 470, Air India expects 250 jets from Airbus, including 210 A320neo and A321neo narrowbody jets, along with 40 A350 long-haul widebodies.

#FlyAI: IT IS FIRM AND FINAL!

Happy to share that we have signed purchase agreements with @Airbus and @BoeingAirplanes at Paris Air Show today to add 470 new aircraft to enhance our fleet strength! Air India is committed to playing its part in building New India.… pic.twitter.com/1CjuW5sTL0

— Air India (@airindia) June 20, 2023

• Boeing's portion involves a total of 220 aircraft, with 190 narrow-bodied aircraft comprising 737 MAXs, 20 787 Dreamliners; and 10 777X in the widebody segment.
• Splitting capacity-wise, the Maharaja will have a share of 400 narrowbodies and 70 widebodies out of the order.
• The Tata-owned carrier is expected to receive its first batch of long-haul A350s by the end of this year.
• This strategic move positions Air India to operate the most advanced and fuel-efficient aircraft across its route network within five years.

ALSO VIEW: Maharaja order from Air India to Boeing and Airbus

According to Reuters, Indian carriers now have the second-largest order book, with over 6% of the industry's backlog, behind only the United States.