• Source:Reuters
Add as a preferred

IndiGo, India's top airline by market share, placed an order with Airbus for 30 A350-900 jets on Thursday, its first order for the widebody aircraft. Indian airlines are attempting to keep up with the world's fastest-growing aviation market, where demand for air travel has skyrocketed as a result of the epidemic while aircraft manufacturers struggle to meet production objectives.

The move by IndiGo, which has a 60% share in India's domestic aviation market, comes at a time when it aims to double its capacity by the end of the decade and expand its network, particularly in international markets. IndiGo's Chief Executive Officer Peter Albers said in a statement that the new fleet would allow IndiGo to enter its next phase of becoming one of the world's leading aviation players.

Also read: Stock Market Continues Winning Streak, Sensex Ends Up 486 Points, Nifty 50 Closes Above 22,550

Airbus no longer publishes pricing, but based on the last catalog rates published in 2018, such a transaction would be worth more than $9 billion. In practice, industry sources say, airplanes are sold for less than half the official price after the usual discounts for bulk orders.

IndiGo recently began flights to destinations in Africa, West Asia, and Southeast Asia, and is also expanding its presence in Europe through its codeshare agreement with seven carriers including Turkish Airlines and KLM. The low-cost carrier expects A350 deliveries to begin in 2027 and stated that they will use Rolls-Royce's Trent XWB engines. IndiGo also has the right to purchase an additional 70 Airbus A350 family aircraft, it said in a statement.

(With Inputs from Reuters)

Also Read: Tech Mahindra Q4 Net Profit Tanks 41% To Rs 661 Crore