250-plane order reflects India's growth potential: IndiGo

After placing the largest single order for 250 aircraft with European major Airbus, IndiGo today said that the purchase contract reflects stabilising trend in the Indian aviation sector.
Asserting that it is a long term player, the no-frills carrier -- which has inked the order valued at little over USD 26 billion -- said Airbus would not have agreed to the deal if it was not sure about growth prospects in India.
"We have sorted our plan for the next 10 years so that we can bring stability for the next one decade... This clearly shows that we are long term players," IndiGo President Aditya Ghosh told PTI.

Since its launch ten years ago in 2005, the Gurgaon-based carrier -- which is gearing up to list its shares -- has so far placed orders for 530 Airbus planes, making it one of the largest customers of the European aircraft maker.
IndiGo has already taken delivery of all 100 Airbus A320 planes which it had ordered in 2005.
Now as many as 430 aircraft is to be delivered by Airbus, Ghosh said, adding that IndiGo is a "long term player".

"This is the third time that IndiGo has been able to take steps to structurally stabilise its own growth story as also the future of Indian aviation (sector)," Ghosh said.

Noting that the whole world is worried about the Indian aviation story, the IndiGo top official, however said that if Airbus was not sure of whether the Indian market can absorb so many planes, then it would not have decided to sell them at all.
"We feel very good," Ghosh said.
Under the latest orders, aircraft would start coming in from 2018-2026 period.
"Deal value at catalogue price is USD 26.5 billion. This is the single largest order for Airbus," he said.
To a query regarding its proposed initial share sale worth about Rs 2,500 crore, Ghosh said the airline has given the clarifications sought by market regulator Sebi.

"We have responded to all the queries raised by Sebi. Such queries are part of the normal process... Now, they will take a call," he noted.
The Securities and Exchange Board of India (Sebi), recently, had sought certain clarifications from the low cost carrier regarding the papers filed by it for the IPO.