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IndiGo has finalised an order for 250 Airbus A320neo planes, the largest single order for the European plane maker.
At listed prices, this is $25.7 billion (Rs 1.7 lakh crore), though customers do get discounts on such deals. The contract was signed on Saturday.
A memorandum of understanding for these 250 planes was signed last October. However, in a draft prospectus filed with the Securities and Exchange Board of India in June, the airline said this had lapsed.
IndiGo has 96 planes in its fleet and is the largest domestic airline, with a market share of a little over 38 per cent.
At listed prices, this is $25.7 billion (Rs 1.7 lakh crore), though customers do get discounts on such deals. The contract was signed on Saturday.
A memorandum of understanding for these 250 planes was signed last October. However, in a draft prospectus filed with the Securities and Exchange Board of India in June, the airline said this had lapsed.
IndiGo has 96 planes in its fleet and is the largest domestic airline, with a market share of a little over 38 per cent.
Before this, IndiGo had two mega orders for Airbus aircraft — for 100 A320s in 2005, and 180 planes (30 A320s and 150 A320neos) in 2011.
The latter was later modified to 180 A320neos. In October, Aditya Ghosh, its president, said deliveries under the new order would begin from 2018 and overlap with those under the 2011 one. IndiGo follows a sale-and-leaseback model.
Most of its planes are on lease for six years and a few on financial lease for 10-12 years.
Ghosh said of the latest order: “This further reaffirms IndiGo’s commitment to the long-term development of affordable air transportation in India and overseas...The IndiGo team is energised and excited to herald this new phase of our growth for many years to come.”
