According to a Reuters report, IndiGo, India’s largest airline, is in advanced negotiations with European aircraft manufacturer Airbus to purchase 500 narrow-body A320 aircraft. If the deal goes through, it will surpass Air India’s order for 470 jets from Airbus in February. The potential order from IndiGo is estimated to be around $25 billion, taking into account the customary discounts for bulk purchases.
IndiGo is also considering discussions for acquiring Boeing 787 wide-body jets, which are a competitor to Airbus. Pieter Elbers, the Chief Executive of IndiGo, refrained from commenting on commercial matters while attending the International Air Transport Association’s annual meeting in Istanbul.
In March, Reuters initially reported that IndiGo, holding a 56% market share in the domestic Indian market, was engaging in talks with both Airbus and Boeing for a substantial order. If confirmed, this order would be the largest by a single airline in terms of the number of units.
IndiGo already stands as one of Airbus’s major customers, with an existing order of 830 Airbus A320 jets, of which approximately 500 are yet to be delivered. According to a Barclays report, Indian carriers possess the second-largest order backlog, accounting for over 6% of the industry’s total, second only to the United States.
Following a notable recovery in air traffic after the Covid-19 downturn, India has emerged as the world’s third-largest aviation market. With aspirations to double its capacity by 2030, IndiGo is considering the purchase of wide-body planes for the first time to expand its international operations.
