Europe’s Airbus (AIR.PA) secured a historic deal on Monday involving the most jets ever bought by a single airline, with an order for 500 narrowbody jets from Indian budget carrier IndiGo (INGL.NS) on the opening day of the Paris Airshow.
As India’s two largest airlines prepare for a significant increase in demand for travel within the region, the multibillion-dollar deal surpasses Air India’s earlier purchase of 470 jets.
Aircraft Will Be Delivered Between 2030 And 2035
Despite the fact that manufacturers are having trouble meeting output goals, Indian airlines’ efforts to keep up with the world’s fastest-growing aviation market, which serves the largest population, has set industry records.
According to a Barclays report released on June 1, Indian carriers now have the second-largest order book, trailing only the United States by more than 6% of the industry backlog.
However, some analysts have expressed concern that airlines might order too many jets to accommodate the same number of passengers.
Airbus Plan’s
Analysts stated that IndiGo is likely to have negotiated the option to switch to any new model or cancel late deliveries rather than being leapfrogged because Airbus has stated that it is considering developing a successor to the A320neo between 2035 and 2040.
In order to benefit from additional economies of scale, IndiGo, which controls nearly 60% of the domestic market in India, is retaining Airbus as its supplier of single-aisle aircraft. However, it has yet to select an engine supplier for the most recent order.
Elbers declined to comment on any further plane orders.