New plane orders take off in India’s aviation market
Barely able to breathe after completing purchases of megaplanes from India, Airbus and Boeing, the world’s largest aircraft manufacturers, are about to receive another record order from the subcontinent.
In February, recently privatized national carrier Air India signed letters of intent with both plane makers for a total of 470 new jets, plus leasing agreements for a further 25 aircraft to ease short-term requirements. A total of 495 aircraft at one time set a new purchase record for the industry.
Now IndiGo is gearing up to win the title of world record holder. Recent media reports say that IndiGo is planning to place orders for over 500 aircraft at once. Contracts for the massive deals are expected to be signed at the Paris Air Show in June.
Based in Gurgaon, Haryana, low-cost airline IndiGo is the undisputed leader of the aviation market in India in terms of passengers carried and fleet size, while formerly state-owned Air India had a market share of just under 10% in 2022.
Indians’ favorite airline
IndiGo was founded in 2006 as a private company by aviation veterans Rahul Bhatiafounder of the airline company InterGlobe Enterprises, and Rakesh Gangwalan Indian-American billionaire and former CEO of the US Airways Group.
As of November 2022, the airline operates 1,600 daily flights on 75 domestic and 26 international routes. It has its main hub at Indira Gandhi International Airport in Delhi. Travelers associate it with qualities uncommon for Indian airlines – highly efficient, customer-oriented, modern – but above all, offering value for money, with on-time and reliable performance. It’s little wonder, then, that the airline achieved a market share of over 55% last year – beating its closest competitors SpiceJet and Air India by orders of magnitude.
Sporting a blue and white livery on its planes, IndiGo operates exclusively Airbus jets, with a fleet comprising 268 Airbus planes and 39 ATR turboprops built in Europe.
Long-lasting partnership with Airbus
The airline’s long partnership with Airbus dates back to 2005 when, as a start-up, IndiGo committed to buy 100 A320s. In 2011, it placed a follow-up order for 180 planes and again for 250 in 2015 – at the time the largest single order for Airbus.
In 2019, another record contract was signed with Airbus, this time for 300 aircraft of the A320neo family, making IndiGo the world’s largest operator of efficient twin-engine jets. It currently operates 730 aircraft of the type out of a total of 830 aircraft ordered from Airbus, with 488 remaining to be delivered to Indigo.
“Indigo’s spectacular growth and ambitious aircraft order from India helped transform the world’s 13th busiest airline market on the eve of Indigo’s launch to number three in the world today,” says Mike Malik, Data Analyst of Cirium aviation.
IndiGo’s planned mega order isn’t the only big deal from India looming on the horizon. Newly created low-cost airline Akasa Air, started in August last year, has announced plans to place a “substantial order” for single-aisle jets that would come in addition to a current order for 72 Boeing 737 MAX jets placed in 2021.
Source: DW
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