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Last Updated : May 08, 2019 03:55 PM IST | Source: Moneycontrol.com

IndiGo in talks with Airbus for another 'large' order: Report

The carrier has been able to maintain its revenue even as its competitors are bleeding due to price wars and rising fuel prices.

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Furthering its expansion plan, budget carrier IndiGo may soon get its hands on some more Airbus SE jets as the two companies are in talks for a large order, Bloomberg reported. The airline may buy the longer version of the plane maker's narrow-body jet, according to its CEO Ronojoy Dutta.

In the next two years, the existing orders of IndiGo will be completed and these new deals will materialize after that. Dutta said the company is considering Airbus' long-distance A321Neo LR and the yet to be released A321 XLR.

"When we order, we'll order in bulk for sure. I can't give you a tentative number but it will be large. We need longer range," Dutta said in an interview with Bloomberg. It is possible that the deal could be multi-billion-dollar order, going by the previous orders the airline has placed. IndiGo's smallest order till date was 100 A320 jets in 2005, in a deal valued $6 billion at the time. The most basic aircraft of Airbus is now at least $100 million each, so the order could be well over $10 billion.

IndiGo is one of the very few players in the Indian aviation market which has the resources to go ahead with its expansion plans. It has also been planning to start flights to Europe. The carrier has been able to maintain its revenue even as its competitors are bleeding due to price wars and rising fuel prices. It has over 50 percent market share, but Dutta wants more for the airline.

"There are a lot of airlines ahead of us. We would like to be one of the biggest, largest and profitable airlines in the world," he said.

If we analyse IndiGo's previous orders, it can be found that the airline always buys in bulk from Airbus, buying 430 jets from the European planemaker on top of its earlier order of 100 older A320 models. IndiGo is one of the most loyal customers of Airbus, which helps it get better rates and maintenance terms from the company.

In the near future, all of IndiGo's orders will go to Airbus, but the company has not ruled out Boeing completely. The company is also in talks with CFM International, a JV between General Electric Co and Safran SA and current supplier Pratt & Whitney for a new turbine order, informed Dutta.
First Published on May 8, 2019 03:55 pm
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