Success in my Habit

Saturday, January 15, 2011

IndiGo orders 180 Airbus A320s worth $15.6 billion

Private low-cost domestic carrier IndiGo has placed a firm order for purchasing 180 single-aisle Airbus A320 passenger jetliners, making it the largest single order for such a large number of jets in commercial aviation history.

IndiGo has signed a memorandum of understanding (MoU) for 180 eco-efficient Airbus A320 aircraft of which 150 will be A320neo's and 30 will be A320s. It will also make IndiGo a launch customer for the A320neo. Engine selection will be announced by the airline at a later date.

At the prevailing catalogue price of Airbus Industrie, the order is estimated to be worth about $15.6 billion.

It is not for the first time that IndiGo has raised eyebrows by placing a huge order for commercial jetliners. In 2005 too, the private airline had created a flutter by ordering 100 Airbus A320 aircraft. It flies 34 Airbus A320s on 25 destinations on the domestic sector and plans to launch international flights by August.

The A320neo, available from 2016, incorporates new more efficient engines and large wing tip devices called Sharklets delivering significant fuel savings of up to 15 per cent.

“This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares,'' IndiGo co-founders Rakesh Gangwal and Rahul Bhatia said. “Ordering more A320s is the natural choice to meet India's growing flying needs. The opportunity to reduce costs and to further improve our environmental performance through the A320neo is key to our decision,'' they said.

“The A320 Family is the recognised market leader. The A320neo, offering the maximum benefit for minimum change, will ensure that this continues to be the case for many years to come,'' Airbus Industrie Chief Operating Officer (Customers) John Leahy said.

Some 6,800 Airbus A320 Family aircraft have been ordered and some 4,500 delivered to more than 310 customers and operators worldwide, making it the world's best-selling single-aisle aircraft family. The A320neo will have over 95 per cent airframe commonality with the A320 Family whilst offering up to 950 km more range or two tonnes more payload.

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