One of India’s low-cost airlines, IndiGo, has made a significant move in the aviation industry by placing an order for 500 narrow-body planes with Airbus. This order sets a new record for the largest single aircraft order ever placed by an airline with Airbus.
During an online briefing, IndiGo’s CEO, Pieter Elbers, called it a historic moment for Indian aviation and positions the airline for the future. Elbers said that the order is timely and serves to secure the airline’s future.
While the financial details of the order were not disclosed, Elbers mentioned that the planning horizon is for a period of 10 years, aligning with the long-term vision of the Indian government.
Regarding the specific mix of planes included in the order, Elbers stated that there is ample time to make those decisions. IndiGo’s aircraft order with Airbus includes the purchase of A320 NEO, A321 NEO, and A321 XLR aircraft.
About the Aircraft
The A321 aircraft initially evolved from the A320 by extending its fuselage to accommodate more seats, allowing airlines to serve high-density routes, according to a report by Simple Flying. The first version, the A321-100, was introduced in 1994 but had a limited production run of only 90 planes. In 1996, Airbus introduced the A321-200, which included additional fuel tanks and new engines to match the range capability of the A320. This strategic decision enabled the A321 to operate longer flights and potentially compete with aircraft like the Boeing 757-200 and the Boeing 737 family.
As part of Airbus’ “neo” (new engine option) upgrade program, the A321 was included. This upgrade brought significant improvements, including a 15% reduction in fuel consumption and an additional range of 500 nautical miles for the A321neo. Airbus also introduced additional fuel tanks throughout the fuselage to further enhance the aircraft’s range.
The A321LR (Long Range) and A321XLR (Extra Long Range) are extensions of this principle. The A321LR incorporates three auxiliary fuel tanks, while the A321XLR introduces a unique rear center tank, allowing for even greater range on a narrow-body aircraft. It’s important to note that the A321neo and A321LR differ primarily in the number of fuel tanks airlines choose to install, while the A321XLR will feature a permanent new tank configuration to achieve record-breaking range capabilities for a narrow-body aircraft, the report says.
What this Means
IndiGo, currently operating over 300 aircraft, already has existing orders for 480 additional aircraft scheduled for delivery between the present time and the end of the 2030s, PTI reported.
With the recent firm order of 500 more aircraft for the years 2030-2035, IndiGo’s total order book now stands at nearly 1,000 aircraft that are yet to be delivered, extending well into the next decade.
Founded in 2006, IndiGo is the leading airline in India in terms of market share, as stated on its website. It served a significant customer base, flying 86 million passengers in the previous financial year, CNN reported. Recognizing the potential of India’s strong economy and growing population, aviation companies are keen to tap into the increasing demand for air travel. In line with this trend, IndiGo’s rival, Air India, also placed a substantial order for over 470 aircraft from Airbus and Boeing.
Not only aviation companies but also technology companies have taken notice of India’s growth potential, the report states. They are expanding production and opening new stores in the country, anticipating a significant increase in their customer base. The International Monetary Fund predicts that India will outperform other major emerging and advanced economies this year, with a projected GDP growth of 5.9%. Additionally, the United Nations estimated that India is on track to surpass China as the world’s most populous nation, with a population of 1.43 billion.
Pieter Elbers, the CEO of IndiGo, stated that the recent aircraft order would contribute to the company’s mission of promoting economic growth, social cohesion, and mobility in India. The majority of IndiGo’s flights are domestic, reflecting the expanding economy, rising disposable incomes, and the growing number of first-time flyers in India’s thriving aviation market.
PTI contributed to this report
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