IndiGo Confirms ‘Historic’ Order For 500 Airbus Narrowbodies

PARIS–IndiGo has firmed a “landmark” order for 500 Airbus A320 family aircraft, believed to be the largest ever single purchase agreement.

The deal takes the number of Airbus aircraft on order by the Indian LCC to nearly 1,000. The airline currently operates a fleet of about 300 aircraft and has an existing order for 480 aircraft to be delivered before the end of the decade. 

Speaking at the Paris Air Show June 19, IndiGo CEO Pieter Elbers said it was “difficult to overstate” the significance of the latest order—the value of which has not been disclosed—adding the aircraft would boost economic growth, social cohesion, and mobility in India. The airline has yet to decide the mix of A320s, A321s or A321XLRs to be taken.

“An order of this magnitude speaks to the potential of Indian aviation and the ambitions which Indigo has. This order will take us well into the next decade and will make sure that IndiGo can continue to serve the needs of the Indian aviation market,” Elbers said. 

Airbus CEO Guillaume Faury said the deal “speaks volumes” about the projected growth of the Indian market.

India’s aviation market is growing rapidly, fueled by an expanding middle class. IATA estimates the market size will swell by 430 million additional air passenger journeys to and from and within the country by 2040 compared with 2019. 

The United Nations has also projected that India will overtake China in 2023 to become the world’s most populous country, with an estimated total of more than 1.4 billion.

“The Indian market is one of the fastest-growing in the world and, with the rise of the Indian economy, we have a wonderful opportunity to continue to serve and to make air travel available for as many Indian customers as possible,” Elbers, who was CEO at KLM before taking the helm at IndiGo, said. 

IndiGo placed its first order with Airbus in 2005 for 100 A320 family aircraft and placed subsequent orders in 2011, 2014 and 2019. Since its first A320neo aircraft was delivered in March 2016, the airline now has 264 in operation.

The airline has become the largest domestic operator in India with a 64% capacity share of seats, according to data provided by OAG Schedules Analyser. Air India, which placed its own order for 470 Boeing and Airbus aircraft in February, is second at 10.3%, while sister companies AIX Connect and Vistara make up 8.1% and 7.4%, respectively.