Reuters reported that a record agreement for the low-cost airline IndiGo to purchase 500 aircraft from the Airbus A320 family for $50 billion is about to finalize. In order to surpass Air India’s record preliminary purchase of 470 planes in February, the European aircraft manufacturer has emerged as the front-runner, according to sources speaking on the sidelines of an airline industry convention in Istanbul.
One of Airbus’s biggest clients, IndiGo has so far placed orders for 830 Airbus A320-family aircraft, approximately 500 of which have not yet been delivered. According to industry insiders, separate negotiations are also underway for the sale of 25 Boeing 787 or A330neo widebody aircraft to the carrier.
According to a recent Barclays analysis, Indian carriers now have the second-largest order book, with over 6% of the industry’s backlog, behind only the United States. The third-largest aviation market in the world is seeing a robust post-Covid travel resurgence, with passenger numbers increasing despite high costs.
By the end of the decade, IndiGo wants to increase its capacity and grow its network, particularly in foreign markets. Seven airlines, including Turkish Airlines, American Airlines, and KLM, are codeshare partners with the airline. With the help of the partnership with Turkish, IndiGo has made a significant push into Europe and is now providing service to 33 European airports.