After a four-year absence, the Paris Air Show, one of the largest events for the global aviation industry, returned. As a result of the resurgence of the air travel industry following the Covid-19 pandemic, industry experts and analysts anticipated a slew of aircraft and engine transactions. They were not disappointed, due to IndiGo and Air India, two of India’s most prominent airlines.
Approximately 80% of the new aircraft orders were placed by the two Indian airlines, which contributed to the show’s near-record order levels.
According to an analysis by the consulting firm IBA, the leading European aircraft manufacturer Airbus and the U.S.-based Boeing announced orders for more than 1,200 aircraft, with nearly 1,000 of those orders coming from Indian airlines.
IndiGo seized the lead on June 19 by placing a record-breaking order for 500 aircraft with Airbus, surpassing Air India’s February announcement to acquire 470 new aircraft, for which it signed a purchase agreement at the air show.
As part of its expansion strategy, Akasa Air, the youngest airline in India, revealed intentions to add four more Boeing 737 Max aircraft to its existing order of 72 aircraft. The airline stated that it is on schedule to “finalise another significant three-digit aircraft order” by the end of 2023, which it will announce.
The Indian low-cost carrier IndiGo has placed an order for 500 aircraft, consisting of A320 and A321 models, which will be delivered over the next decade. The airline now has an order book of nearly 1,000 aircraft, to be delivered over the next decade. The company currently operates a fleet of more than 300 aircraft and previously placed reservations for 480 additional aircraft.
Despite the fact that IndiGo did not disclose the transaction’s value, industry estimates place it at approximately $50 billion at list prices, which is less than the $70 billion Air India deal. However, actual costs for these airlines are anticipated to be considerably lower, as volume orders frequently qualify for substantial discounts.
IndiGo’s chief executive officer, Pieter Elbers, highlighted the significance of this historic order for 500 Airbus A320 family aircraft. “This order strongly reaffirms IndiGo’s belief in the growth of India,” he said, adding that the company anticipates 100 million passengers this year.
Following the February announcement, the CEO of Air India emphasised that the aircraft order was really about “recognising the opportunity for Indian aviation” and investing “for India’s benefit.”
Source- the print