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IndiGo to Buy 250 Planes for $25.5 Billion in Largest-Ever Order for Airbus

Discussion in 'International Politics' started by Anees, Oct 15, 2014.

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  1. Anees

    Anees Lt. Colonel ELITE MEMBER

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    Budget carrier IndiGo will buy 250 A320neo planes from Airbus Group in a deal worth $25.5 billion (Rs. 1.53 lakh crore at 60 rupee per dollar), the airline said in a statement on Tuesday. This would be Airbus' largest order on number of aircraft, IndiGo said.

    It would also be IndiGo's biggest purchase of aircraft till date. IndiGo, which competes with SpiceJet and GoAir in the domestic market, operates 83 A320 aircraft. In 2011, it had placed orders for 180 more, largely for the upgraded re-engined A320neo variants, with deliveries expected to begin early next year.

    The airline has also inked a deal to take 12 A320s from Singapore's Tiger Airways on lease.

    These aircraft will allow IndiGo to retire its older aircraft and keep the average age of its fleet to around six years, helping to keep operating costs down.

    IndiGo is India's largest airline by market share and has been reporting profits for the last six years. Its fortunes contrast with other carriers struggling in an Indian market that faces severe overcapacity.

    IndiGo is expected to list its shares early next year with an initial public offering that could be worth up to $400 million (Rs. 2,400 crore at 60 rupee per dollar), three people involved in the deal told Reuters.

    (With inputs from Reuters)

    IndiGo to Buy 250 Planes for $25.5 Billion in Largest-Ever Order for Airbus - NDTVProfit.com
     
    omya likes this.
  2. Gessler

    Gessler BANNED BANNED

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    Holy bulls...250 airliners at one go? I thought the 180 planes order was their max but IndiGo proves us wrong again.

    This airline has a brilliant future.
     
  3. randomradio

    randomradio Colonel REGISTERED

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    Do you know what cracks me up? A small company like Indigo can come up with the funds to buy 250 passenger aircraft while the whole of the Indian govt can't afford a lousy Rafale.

    And just three years ago, Indigo had picked up another 180 aircraft.
    Biggest order: IndiGo airline picks up 180 jets - Economic Times
     
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  4. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    bigger than MRCA deals

    More Cash and planes Involved :azn:
     
  5. randomradio

    randomradio Colonel REGISTERED

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    Too bad they didn't ask for indigenous production. One of our companies should setup an Airbus factory here.
     
  6. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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    It's a private company, they don't want to add 3 years to the negociation time and 10 years to the production.
     
    Manmohan Yadav and GUNS-N- ROSES like this.
  7. Gessler

    Gessler BANNED BANNED

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    This gives IndiGo a fleet of 430 brand new A320s.

    How many of the existing 83 A320s are they gonna phase out by the time these are delivered?
     
  8. randomradio

    randomradio Colonel REGISTERED

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    I get that about the Indigo offer. But I was thinking more long term. Russia wants to setup production facilities in India for their Superjets. Once the factory is setup in India, the Indian airline companies will purchase from Superjet, and eventually NAL's aircraft too. An Airbus factory in India will even the odds, or they will lose the low and mid segments to others, and that's where the money is.
     
  9. layman

    layman Aurignacian STAR MEMBER

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    Key to the successful business in the aviation sector with commercial airliner is shedding of ageing fleet and reducing the cost on maintenance and good service. Ageing fleet after 3 to 4 years starts eating into the profit than the earnings.

    Considering the cost of depreciation and differential amount to the new fleet spurs the growth... Well Investment of/for the future.... :tup:
     
  10. HMS Astute

    HMS Astute BANNED BANNED

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    Why does India not build it's own airplanes? I think it's better to spend $25bn on your own Indian aerospace industry in order to create jobs for Indian engineers, employ young talented Indian graduates, and boost the needed sectors across the country. Transferring all the money to other country's bank account will hurt the Indian industries, business and economy.
     
    Last edited: Oct 16, 2014
    Sree likes this.
  11. tusharm

    tusharm Captain FULL MEMBER

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    Search RTA Astute
     
  12. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    CAUSE there are not companies In India that build passenger planes that big
     
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