IndiGo's To Potentially Order 500 Aircraft From Airbus: Report

IndiGo is reportedly on the verge of finalising a significant deal to purchase 500 narrow-body A320-family jets from Airbus according to a media report which cited industry sources on Sunday. 

According to Reuters, Airbus is currently the front-runner for the order, which would surpass Air India's earlier provisional purchase of around 470 jets in February. The deal is estimated to be valued at approximately USD 50 billion based on Airbus' list prices, although the actual value would be significantly lower due to standard bulk deal discounts offered by the airline industry, aircraft analysts explained. 

Additionally, it was reported that Airbus and Boeing are engaged in separate negotiations with the airline to sell 25 wide-body jets, either A330neo or Boeing 787 models. 

During his presence at the annual meeting of the International Air Transport Association in Istanbul, Pieter Elbers, the CEO of IndiGo, declined to provide any comments on matters related to the airline's commercial activities. Both Airbus and Boeing also refrained from providing any comments. 

IndiGo, which currently holds a 56 per cent share of the domestic Indian market, had been in discussions with both Airbus and Boeing for this order. If confirmed, this deal would mark the largest single-airline order in terms of units. 

It is worth noting that IndiGo is still awaiting the delivery of nearly 500 jets out of a total order of 830 Airbus A320-family planes, making the airline one of the largest customers of Airbus. 

During the airline industry meeting in Istanbul, the head of a group representing global airlines expressed concerns about the delays in plane and parts production. The group warned that these delays could limit airline capacity just as the demand for air travel is approaching a full recovery from the pandemic. 

Airbus and Boeing have attributed the delivery delays to supply chain issues, and the backlog of aircraft awaiting repairs in engine maintenance facilities has also forced airlines to ground numerous planes. 

Both Airbus and Boeing have been securing new orders worth billions of dollars that extend beyond 2030 as airlines seek to secure supplies well in advance due to anticipated shortages.