IndiGo's Record-Breaking Airbus Deal Signals India's Aviation Boom
Carter Ruff
India's IndiGo airline has ordered 500 planes from Airbus, the largest in aviation history, reflecting the country's economic growth and rising demand for air travel.
The deal, which is worth an estimated $50 billion at list prices, was announced on Monday at the Paris Air Show. It sets "the record for the biggest single purchase agreement in the history of commercial aviation," Airbus said in a statement.
The order includes 500 single-aisle A320 Family jets, which are among the best-selling aircraft in the world. The planes will be delivered between 2030 and 2035, bringing the total number of Airbus aircraft IndiGo has ordered to 1,330.
IndiGo is India's top airline by market share, according to its website. It flew 86 million customers in the last financial year. The company said the new order will enable it to fulfill "its mission to continue to boost economic growth, social cohesion and mobility in India."
India is one of the fastest-growing aviation markets in the world, driven by its strong economy and its booming population, which recently surpassed China as the most populous nation. The International Monetary Fund expects India to grow by 5.9% this year, outperforming all major emerging and advanced economies.
Aviation companies are eager to capitalize on India's potential, as more people are expected to travel by air in the coming years. In February, IndiGo's rival Air India ordered more than 470 jets from Airbus and Boeing.
The Indian government is also investing heavily in airport infrastructure, with plans to spend $12 billion in the next two years to increase the number of airports to 220 by 2025, up from 148 currently.
"This landmark order ... is democratising affordable air travel for millions of people in the world's fastest growing aviation market," said Christian Scherer, chief commercial officer and head of international at Airbus.
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