IndiGo Orders 500-Planes from Airbus and Signals Unprecedented Growth

• Financial

Indian low-cost airline IndiGo has made commercial aviation history, placing a monumental order for 500 planes from European manufacturer Airbus. This move, setting a new global record, outshines IndiGo's domestic competitor Air India's order of 470 planes from Airbus and Boeing earlier this year.

Charting a Different Path in a Post-Pandemic World

While the aviation industry worldwide is still grappling to restore its pre-pandemic glory, India's civil aviation market presents a contrasting narrative. Recent data reveals that the nation's air traffic has surpassed its December 2019 figures, indicating a robust growth trend.

The aviation sector's resilience in India is likely due to a strong economy and rising income levels, factors expected to fuel an increase in first-time travelers. Given that India recently overtook China as the most populous country, the growing aviation market anticipates a surge in aircraft demand.

IndiGo's recent order is a strategic response to this projection, as the airline aims to expand its fleet sufficiently to meet the expected influx of passengers. "This is just the beginning, there's more going forward. With the growth of India and the growth of the Indian aviation market...this is the right time for us to place this order," said Pieter Elbers, IndiGo Chief Executive, at a news conference.

Airbus and IndiGo: A Partnership of Growth and Innovation

Since its inception in 2006, IndiGo has heavily relied on Airbus's state-of-the-art aircrafts, propelling its growth to become one of the fastest-expanding airlines globally.

It received its first A320neo aircraft in March 2016, and now owns one of the largest fleets of Airbus A320 aircraft. Known for its enhanced aerodynamics and latest generation engines, the A320 family allows for lower fuel consumption, yielding higher profits.

At present, IndiGo's fleet comprises 264 aircraft, including 162 A320neos, 79 A321neos, 21 A320neos, and two A321 freighters. IndiGo currently operates approximately 1,800 flights daily, linking 78 destinations within India.

This latest aircraft order hints at more ambitious plans on the horizon, as the airline intends to expand its operations internationally, with its sights set on reaching 32 destinations globally. Image by fanjianhua on Freepik