Paris Air Show: Indigo on Expansion Drive with 500 Plane Order with Airbus
India’s fast growing airline Indigo could finalize its order for 500 A230neo aircrafts from Airbus. As per a Bloomberg report, Airbus could announce the order during Paris Air Show. As per the sources, negotiations between IndiGo and Airbus are still underway and the final order could be announced by Monday in Paris. IndiGo has been expanding fast and the airline has witnessed strong growth in many sectors. IndiGo has also witnessed bigger share in the Indian market as Go First grounded after bankruptcy. IndiGo currently has a backlog for airplane orders with Airbus. IndiGo and Airbus have declined to comment on the report published in media.
Airbus is also in discussion with Saudi Airline Flynas Co. for a large order. The number hasn’t been confirmed yet as negotiations are ongoing. On Friday, Airbus Chief Executive Officer Guillaume Faury commented that the industry is getting back to exciting old times. Aviation industry suffered a major blow during COVID-19 pandemic but majority of big airlines have managed to report strong comeback as air travel witnessed massive growth after pandemic restrictions were lifted. Aviation industry is expecting a strong growth and both Boeing and Airbus have strong backlog of orders.
IndiGo is focused on Indian destinations but in the recent years, the fast-growing airline has been operating on many overseas routes. IndiGo also operates codeshare flights. IndiGo’s main strength has been stable fares for local flight and on-time performance. The airline has been leading in Indian market with the destinations it covers. Launched in 2006, Indigo managed to become the largest airline in India in 2012 in terms of passenger share.
Flynas is aiming to improve its position in the low-cost aviation segment in the Middle East. The airline earlier indicated that it is planning to raise its previous order to 250 aircraft in order to continue smooth operations and expansion. Flynas currently has 50 aircraft operating on different routes and the company has 50 aircraft order pending with Airbus.
IndiGo is also considering widebody aircraft order for 25 aircraft. For this order, consultations are ongoing with Boeing and Airbus. Air India has changed management and the airline is working on an ambitious revival plan. Air India has advantage of strong routes on its network. If Air India manages to improve its customer service level, it could offer stiff competition to IndiGo. Air India also has a pending order for 470 aircraft.
During the International Air Transport Association (IATA) annual meeting in Istanbul, IndiGo CEO Pieter Elbers refrained from commenting on commercial matters, despite the recent Airbus order made by the airline. This order comes at a time when India, the world's third largest aviation market, is experiencing a robust recovery in travel following the COVID-19 pandemic. Despite high fares, passenger numbers are surging.
IndiGo aims to increase its capacity twofold by the end of the decade and expand its network, particularly in international markets. The airline has established codeshare partnerships with seven carriers, including American Airlines, Turkish Airlines, and KLM.
Being one of Airbus' major clients, IndiGo has already placed an order for a total of 830 Airbus A320-family jets. Out of this order, around 500 aircraft are yet to be delivered.
Indian aviation sector has strong potential and local destinations have witnessed massive growth in the recent years. Paris Air Show will give an indication of growth we can expect in Indian aviation market.