IndiGo Places Largest Order In Aviation History, Worth $50 Billion
The Indian airline IndiGo has made history by placing an order for 500 Airbus A320 family aircraft, marking the largest-ever aviation deal.
This order reinforces India’s position as a significant growth center for the global aviation industry.
The massive order is expected to enable IndiGo to expand globally from its Indian hubs and pursue a hybrid model to maximize future growth opportunities.
These are the similar strategies adopted by Canadian airline WestJet and Brazilian airline Azul Linhas Aéreas Brasileiras.
India’s aviation market is currently the fastest-growing globally, with projections indicating a significant increase in passenger numbers.
By 2030, India is expected to transport 450 million passengers from over 200 airports, representing a growth of 300% compared to the current 145 million passengers.
Additionally, Indian carriers are anticipated to place orders for an additional 1,400 aircraft over the next five years.
IndiGo’s order brings the total number of Airbus aircraft on order by the airline to 1,330. The CEO of IndiGo, Pieter Elbers, highlighted the long-term impact of the order, emphasizing that the delivered aircraft would support the country’s progress and help IndiGo fulfill its promise of building an extensive network within India and internationally.
Analysts believe that the timing of the deal aligns with India’s projected GDP growth and the pent-up demand in the country.
With an average GDP growth of 7%, the aviation industry is expected to grow organically at a rate of 14%, indicating favorable conditions for the industry.
IndiGo intends to leverage the new aircraft order to develop new routes from tier-II and III cities within India and expand its international operations.
After a period of aggressive expansion in tier-I cities, the airline now aims to enhance connectivity to secondary cities within India and strengthen international flights to destinations in the Commonwealth of Independent States (CIS), Africa, and South and Southeast Asia.
However, the recent order did not include any wide-body aircraft, although there were expectations for such orders to enable long-haul flights to the UK, North America, and Australia. IndiGo currently operates a fleet of wet-leased Boeing 777 aircraft from Turkish Airlines for long-haul flights.
Also Read:- Latest Sovereign Gold Bond – SGB, Thing To Know About!
IndiGo is rapidly transitioning from a primarily domestic low-cost airline service to a global airline company with a hybrid model.
The deal positions IndiGo for future growth and expansion in the highly competitive aviation industry. It capitalizes on India’s increasing primacy as a global aviation hub.
