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Indigo airlines plane

IndiGo and Airbus Skyrocket to New Heights with Record-Breaking Deal that will Redefine the Future of Indian Aviation

Posted on 20 June 2023
Reading Time: 3 minutes

IndiGo, India’s largest airline, and Airbus, the leading European aerospace major, have inked an unprecedented agreement that has become a new milestone in commercial aviation.

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The monumental deal, announced at the Paris Air Show, entails the purchase of 500 aircraft from the A320neo family, making it the largest agreement in the history of commercial aviation.

The significance of this historic order is tremendous. With an expanded order book of almost 1,000 aircraft well into the next decade, IndiGo can continue to boost economic growth, social cohesion, and mobility in India, recently acknowledged as the most populous country in the world. This record-breaking deal also marks a new chapter in the relationship between Airbus and IndiGo, promising to democratize affordable air travel for millions in the world’s fastest-growing aviation market.

The A320 Family’s best-in-class operating economics have been powering IndiGo’s growth for almost two decades. The latest deal is a resounding endorsement of this partnership and the A320 Family’s robustness, with both companies looking forward to contributing to the growth of India’s air connectivity in its domestic network and into international markets.

A320 in respect of its tech and firsts in Aviation Industry:

  • Fly-by-wire system for precise and responsive flight control
  • Glass cockpit with electronic flight displays for improved situational awareness
  • Advanced flight management system for efficient navigation and performance calculations
  • Standardized Airbus Cockpit Philosophy for seamless pilot transitions
  • Enhanced Ground Proximity Warning System (EGPWS) for terrain and obstacle alerts
  • Fuel-efficient design with advanced aerodynamics and engines
  • Advanced maintenance and diagnostic systems for proactive monitoring and reliability.

IndiGo’s current fleet comprises 162 A320neo, 79 A321neo, 21 A320ceo, and 2 A321 freighters. The airline’s relationship with Airbus dates back to 2005 with an initial order of 100 A320 aircraft. Since then, the partnership has flourished with subsequent orders in 2011, 2014, and 2019, culminating in the recent record-breaking order of 500 aircraft.

The deliveries of the new fleet are projected to commence after 2030, without specific details yet on how the versions (A320, A321, A321XLR) will be distributed. The ambitious deal is indicative of IndiGo’s growth strategy, targeting the low penetration of air transport in India compared to the population.

To meet the surging demand, Airbus aspires to reach a production rate of 75 aircraft from the A320 family per month. The manufacturer is concurrently expanding in India with engineering, design, and airworthiness management areas, demonstrating a strong commitment to the region’s booming aviation market. This historic agreement with IndiGo has eclipsed the previous record held by Air India’s purchase of 470 jets in February. As Indian airlines strive to expand rapidly to meet the growing population demands, the Indian government has announced a $12 billion investment over the next two years into airport infrastructure to keep pace with the world’s fastest-growing aviation market. The influx of funds is designed to increase the number of airports to 220 by 2025, a significant increase from the current 148 airports.

This landmark deal between IndiGo and Airbus is more than just a business transaction – it is a commitment to the future of aviation in India, and a testament to the potential of affordable, efficient air travel to transform societies and economies.

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