Domestic airline IndiGo has placed an order for 30 Airbus A350-900 aircraft, which will enable the carrier to expand its network further, according to an exchange filing issued on April 24. The agreement will mark the entry of India's largest carrier into wide-space body aircraft segment and further strengthen its fleet.
The deal could be worth $9 billion, according to Reuters. However, the report said the aircraft maker has stopped publishing the prices of its aircraft and the new deal's cost estimation is based on the catalogue published in 2018. The report also added that airplanes in such bulk deals are sold for less than half of the official price.
Pieter Elbers, the chief executive officer of IndiGo, said, “Fleet of 30 Airbus A350-900 aircraft will allow IndiGo to embark on its next phase of becoming one of the leading global aviation players. This reaffirms IndiGo’s belief in, and commitment to, the growth of India, and in our strategic partnership with Airbus.”
The company expects the deliveries to begin from 2027, the filing said. The low-cost carrier also has purchase rights for an additional 70 Airbus A350 family aircraft, it said in a statement. The new aircraft will be powered by Rolls Royce’s Trent XWB engine, which will see the beginning of a relationship between the two firms. As of now, the airline operates over 350 aircraft.
India is the fastest growing aviation market in the world and carriers are trying to cater to the rising demand even as manufacturers struggle to meet production goals.
In June 2023, the firm had placed the largest-ever single aircraft order by any airline for 500 aircraft with the European aircraft maker.
Following the order, the orderbook of A320 family aircraft stands at almost 1,000, which are yet to be delivered, the statement said. The order comprises various aircraft including A320NEO, A321NEO and A321XLR.
Ewen McDonald, Chief Customer Officer, Rolls-Royce said: “This substantial order from IndiGo for our Trent XWB-84 engines is a great win for Rolls-Royce. It re-affirms the position of the Trent XWB as the future-ready, engine of choice among airline operators.
“India is an important market for Rolls-Royce. The future promises to be exciting, with significant infrastructure developments and further growth expected in air travel.
Benoît de Saint-Exupéry, Airbus EVP Sales, Commercial Aircraft:
“This is an exciting new chapter in our close partnership with IndiGo. The airline has revolutionised Indian domestic air travel with the A320neo Family by making flying more accessible to more people. With the A350 selection, Indigo is now embarking on further opening the world to India. We will support the airline to take this pioneering and strategic step. A big thank you to the IndiGo team for putting their trust in Airbus once again.”
The airline, which has a market share of over 60 percent, is aiming to expand its footprint in international markets. It has started flight operations to Africa, West Asia, and Southeast Asia, while it has also signed codeshare agreements with Turkish Airlines and KLM for the European market.
With inputs from Reuters
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