Indian budget airline IndiGo has signed an agreement to buy 180 Airbus A320 aircraft, the European plane maker said, in a record sale worth up to US$15.6 billion.
“It is the largest single firm order number for large jets in commercial aviation history,” Airbus said in a statement, although the company has signed contracts worth more financially.
The low-cost airline has signed a memorandum of understanding to acquire 150 single-aisle A320NEO jets. The NEO versions — “new engine option” — are equipped with more efficient engines and fuel-saving wing tips.
Photo: AFP
IndiGo is the first client for this new version of the aircraft, which Airbus only unveiled last month and plans to start delivering in early 2016.
The other 30 planes are to be standard versions of the A320.
The value of the deal was not announced, but is expected to come in lower than the Airbus’ catalog price of US$15.6 billion.
“That is a guideline price and does not take into account eventual reductions for bulk purchases,” a source close to the deal said.
“This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares,” IndiGo co-founders Rakesh Gangwal and Rahul Bhatia said.
The aircraft are expected to deliver fuel savings of up to 15 percent, with corresponding cuts in pollution.
“Ordering more A320s was the natural choice to meet India’s growing flying needs,” Gangwal and Bhatia said in a statement. “The opportunity to reduce costs and to further improve our environmental performance through the A320NEO were key to our decision.”
Airbus chief operating officer for customers John Leahy said the deal gave IndiGo a strong position in the fast growing Indian air travel industry.
“This order positions IndiGo to take full advantage of the predicted growth in Indian air travel and we are delighted that they continue to build their future with Airbus,” he said.
Airbus said it has delivered about 4,500 of the A320 aircraft in its various forms to 310 airlines, with another 1,300 on the order books, making it the world’s best-selling single-aisle aircraft family.
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