IndiGo, the Indian carrier, sets a historic record with a purchase order of 500 Airbus A320 aircraft, marking the largest single purchase agreement in commercial aviation history.
On the opening day of the Paris Airshow, the deal was unveiled with an approximate value of $55 billion (£43 billion) before factoring in any potential bulk-order discounts.
IndiGo’s order with Airbus brings their aircraft order book to a total of 1,330, indicating a series of deliveries anticipated to take place from 2030 to 2035.
According to the company, the upcoming deliveries will assist IndiGo, a budget carrier, in reducing operating costs and enhancing fuel efficiency.
With analysts suggesting that India is poised to become the next growth frontier for the aerospace industry, the country is emerging as a burgeoning aviation market and is anticipated to surpass China in this regard.
With projections indicating that it will be the fastest-growing G20 economy in the coming years, India has witnessed a notable surge in the number of first-time flyers, particularly following the pandemic.
Significant growth potential remains untapped, as less than 5% of India’s population of 1.4 billion is estimated to have experienced air travel. With increasing disposable incomes, air traffic in India has been expanding significantly, indicating promising prospects for the aviation industry.
In February, Air India, a competitor of IndiGo, grabbed attention by securing an order for 470 aircraft from both Airbus and Boeing, making headlines in the aviation industry.
The recent agreement signifies a renewed sense of confidence in the airline industry following the pandemic, and the order placed by the low-cost carrier reflects the ambitious stance of one of the world’s fastest-growing airlines.
Ryanair and Saudi start-up Riyadh Air have joined the trend by placing substantial aircraft orders.
However, manufacturers are encountering challenges in meeting the demand due to disrupted supply chains resulting from the aftermath of Covid-related shutdowns. This struggle to accelerate production is occurring despite the airlines’ eagerness to invest in new aircraft.
Following the pandemic-induced slowdown, the airliner market is now witnessing a significant rebound. Carriers are swiftly making up for lost time by renewing their fleets and, in certain instances, pursuing aggressive expansion strategies.
Source : bbc.com