On the first day of the Paris Airshow, Indian budget carrier IndiGo (INGL.NS) ordered 500 narrowbody jets from Airbus (AIR.PA), a record for a single airline.
As India’s two largest airlines prepare for a surge in regional travel demand, the multibillion-dollar contract surpasses Air India’s 470 jet acquisition earlier this year.
Reuters reported months of discussions before IndiGo ordered A320neo-family jets. Industry sources predicted a 500-plane agreement before Le Bourget.
“This is only the beginning. “With the growth of India (and) the growth of the Indian aviation market… this is the right time for us to place this order,” IndiGo CEO Pieter Elbers told a news conference.
The plane will arrive in 2030–2035.
Indian Airlines’ efforts to keep up with the world’s fastest-growing aviation sector, serving the largest population, have shattered industry records even as manufacturers struggle to reach output goals.
Barclays said on June 1 that Indian carriers have the second-largest order book, behind the US, with over 6% of the industry backlog.
Some analysts worry that airlines are over-ordering jets to attract the same passengers.
After the IndiGo contract, Airbus CEO Guillaume Faury stated it was too early to consider narrowbody jet production rates above 75 per month.
After the epidemic, Airbus had trouble restoring manufacturing and moved the mid-decade objective to 2026. Still, Faury said supply disruption was a short-term concern compared to delivery timetables starting next decade.
Analysts said IndiGo likely secured the option to switch to any new model or cancel late deliveries rather than be leapfrogged because Airbus is considering creating a successor to the A320neo between 2035 and 2040.
IndiGo, which controls 60% of the Indian domestic market, is sticking with Airbus for single-aisle jets to maximize scale. It has not chosen an engine provider for the latest order.
After engine durability difficulties, it switched suppliers from Pratt & Whitney (RTX.N) to CFM International four years ago.
IndiGo has roughly 480 Airbus jets left from prior orders. Elbers said the fresh order would treble the airline.
Sources say IndiGo is in talks with Airbus and Boeing (BA.N) for 25 widebody planes, which could be A330neos or 787s.
Elbers refuses to discuss plane orders.
