Success in my Habit
Saturday, February 19, 2011
Etisalat keeps option to leave DB venture open
Etisalat, the $8.7 billion telecom major based in the UAE, may exit the joint venture it has with Dynamix Balawas (DB) group depending on the outcome of the investigation into the Rs 1,76,000 crore 2G spectrum scam. Etisalat is simultaneously in negotiations with telecom operators like Idea Cellular of Aditya Birla group and Reliance Communications (RCom) to pick up equity stake in either of them. Both of them have 3G spectrum. One thing that Etisalat has signalled is that it will continue to stay put in the Indian telecom market that offers opportunities as well as challenges.
Nokia Siemens Networks leads Indian 3G market
Nokia Siemens Networks has emerged as the leading 3G mobile infrastructure and services vendor in India with 30% market share. The company has won deals from Aircel, Bharti Airtel, Idea Cellular, Tata Teleservices and Vodafone for the deployment of 3G networks in twenty of the country's telecom circles. With the rapid growth of smart mobile devices in India, a strong 3G infrastructure will boost the country's broadband penetration. Nokia Siemens Networks recently demonstrated the world's first TD-LTE video call on 2.3GHz using commercial hardware in its Bengaluru R&D centre.
Thursday, February 10, 2011
Suzlon gets $1.28b order from Caparo
Mumbai: Suzlon Energy has received an order worth $1.28 billion for supply of wind turbines aggregating to 1,000 MW to Caparo Energy (India), the Pune-headquartered company said in a statement on Friday.
Caparo Energy, an independent power producer, plans to commission 500 MW by March 2012, and another 500 MW by March 2013 in India.
"Price of the turbines for the first 500 MW is fixed, while the next 500 MW would have index-based price so that cost rise can be absorbed," Chief Financial Officer Robin Banerjee told ET.
Caparo's order comes at a time when Suzlon is struggling with order inflow as global demand for wind energy continues to be muted.
Caparo Energy, an independent power producer, plans to commission 500 MW by March 2012, and another 500 MW by March 2013 in India.
"Price of the turbines for the first 500 MW is fixed, while the next 500 MW would have index-based price so that cost rise can be absorbed," Chief Financial Officer Robin Banerjee told ET.
Caparo's order comes at a time when Suzlon is struggling with order inflow as global demand for wind energy continues to be muted.
The Switch enters India's booming wind and solar market
The Switch, a Finland-based new energy technology company, announced the expansion of its international presence by establishing a wholly-owned The Switch India office in Chennai. The new home base serves as the company’s beachhead to strengthen its business network and to lead business development efforts in the fast-growing wind and solar power market in India.
Pertti Kurttila, VP, Supply at The Switch: “India’s growing wind and solar power market is highly attractive for us. The government’s wind and solar power program has been the fastest growing sector of the country’s energy planning process. India’s wind power potential exceeds 45,000MW and the country also possesses a large and high-potential solar energy resource. By 2022, India’s target is to have 38,500MW of installed wind power capacity and 20,000MW of solar power respectively, part of which is based on grid connected solar photovoltaic (PV) systems.”
The Switch has more than 5,000MW of installed wind power capacity in the global market and in solar solutions the company’s focus is on high-power level applications starting at 500kW. “Our strategy is to provide efficient and reliable technology to help India achieve the government’s energy goals and to meet the country’s growing energy needs also in the future,” Kurttila explains.
Permanent magnet technology gains momentum in the Indian wind power market
By focusing on permanent magnet technology, The Switch has helped the world’s top turbine manufacturers, such as Goldwind, Doosan and Powerwind generate more high-quality electricity.The Switch products are already also gaining momentum in the Indian market. Through the recent wind turbine purchase agreement signed by Chinese Dongfang Electric and Indian KSK Energy, The Switch will be contributing to the export of 166 1.5MW wind turbines to India. The Switch is a technology provider and key component supplier of permanent magnet generator and full-power converter packages for Dongfang Electric.
“For us, the Dongfang Electric and KSK Energy deal is a step in the right direction, and we look forward to participating in many more businesses in the Indian wind and solar power market,” said C.Sundar, who is responsible for the sales and marketing activities for the Switch in India. “Of the total 18,000MW of installed Indian renewable energy capacity, some 13,000MW come from wind energy alone and the number is expected to grow. Our intent is to be the partner of choice for our Indian customers for multi-megawatt power generation and to help them develop the country’s vast potential for clean energy.
About The Switch
The Switch is a leading supplier of megawatt-class permanent magnet generator and full-power converter packages that effectively capture power from highly variable new energy sources like wind and solar. The technology ensures reliable, future-proof grid compliance and maximized energy yields. Since starting operations in July 2006, The Switch has reached net sales of EUR 125 million, with 5,000MW of installed wind power capacity. The Switch is headquartered in Vantaa, Finland with production facilities in Finland, China and the US, and offices in Denmark, India, Germany, Korea and Spain.
Pertti Kurttila, VP, Supply at The Switch: “India’s growing wind and solar power market is highly attractive for us. The government’s wind and solar power program has been the fastest growing sector of the country’s energy planning process. India’s wind power potential exceeds 45,000MW and the country also possesses a large and high-potential solar energy resource. By 2022, India’s target is to have 38,500MW of installed wind power capacity and 20,000MW of solar power respectively, part of which is based on grid connected solar photovoltaic (PV) systems.”
The Switch has more than 5,000MW of installed wind power capacity in the global market and in solar solutions the company’s focus is on high-power level applications starting at 500kW. “Our strategy is to provide efficient and reliable technology to help India achieve the government’s energy goals and to meet the country’s growing energy needs also in the future,” Kurttila explains.
Permanent magnet technology gains momentum in the Indian wind power market
By focusing on permanent magnet technology, The Switch has helped the world’s top turbine manufacturers, such as Goldwind, Doosan and Powerwind generate more high-quality electricity.The Switch products are already also gaining momentum in the Indian market. Through the recent wind turbine purchase agreement signed by Chinese Dongfang Electric and Indian KSK Energy, The Switch will be contributing to the export of 166 1.5MW wind turbines to India. The Switch is a technology provider and key component supplier of permanent magnet generator and full-power converter packages for Dongfang Electric.
“For us, the Dongfang Electric and KSK Energy deal is a step in the right direction, and we look forward to participating in many more businesses in the Indian wind and solar power market,” said C.Sundar, who is responsible for the sales and marketing activities for the Switch in India. “Of the total 18,000MW of installed Indian renewable energy capacity, some 13,000MW come from wind energy alone and the number is expected to grow. Our intent is to be the partner of choice for our Indian customers for multi-megawatt power generation and to help them develop the country’s vast potential for clean energy.
About The Switch
The Switch is a leading supplier of megawatt-class permanent magnet generator and full-power converter packages that effectively capture power from highly variable new energy sources like wind and solar. The technology ensures reliable, future-proof grid compliance and maximized energy yields. Since starting operations in July 2006, The Switch has reached net sales of EUR 125 million, with 5,000MW of installed wind power capacity. The Switch is headquartered in Vantaa, Finland with production facilities in Finland, China and the US, and offices in Denmark, India, Germany, Korea and Spain.
Non-life insurers clock 22% growth in April-December
Non-life insurance companies registered 22.41 per cent growth in premium collections during the first nine months of the financial year.
Mumbai: According to data released by the Insurance Regulatory Development Authority (Irda), non-life insurers collected a total gross premium of Rs 30,813 crore during April-December, as compared to Rs 25,172 crore in the corresponding period last year.
“The overall economic scenario is good. Health segment is growing at 35-40 per cent while motor at 20 per cent,” said ICICI Lombard Chief Financial Officer Rakesh Jain.
Auto sales increased by 28.62 per cent in the first nine months. It has helped to increase motor insurance, which accounts for their 50 per cent business.
“Insurer’s see surge in premium income when auto sales go up,” said a senior executive of a non-life insurance company.
At present, health comprises 25 per cent of the business for the industry, whereas motor generates 40 per cent. Private players grew by 24.35 per cent while four public sector insurers saw a growth of 21 per cent.
Mumbai: According to data released by the Insurance Regulatory Development Authority (Irda), non-life insurers collected a total gross premium of Rs 30,813 crore during April-December, as compared to Rs 25,172 crore in the corresponding period last year.
“The overall economic scenario is good. Health segment is growing at 35-40 per cent while motor at 20 per cent,” said ICICI Lombard Chief Financial Officer Rakesh Jain.
Auto sales increased by 28.62 per cent in the first nine months. It has helped to increase motor insurance, which accounts for their 50 per cent business.
“Insurer’s see surge in premium income when auto sales go up,” said a senior executive of a non-life insurance company.
At present, health comprises 25 per cent of the business for the industry, whereas motor generates 40 per cent. Private players grew by 24.35 per cent while four public sector insurers saw a growth of 21 per cent.
Online marketing industry size to touch Rs 2k crore by 2013
Mumbai/ Ahmedabad: As rules of the advertising game change rapidly, online or digital marketing market size in India is estimated to touch close to Rs 2,000 crore in the next two years from a Rs 1,400 crore now, say management experts.
At the Confederation of Indian Industry (CII) conference on 'Best Marketing Practices', experts felt that no company could now possibly ignore the power of social networking sites in creating today's brands.
"Apart from search engines like google.com and yahoo.com, the next top sites in India are social networking sites like Facebook, Orkut, Twitter and Linkedin. Facebook users have increased nearly nine folds during last year, and now companies are sitting up and taking notice of the importance of advertising through such websites, especially when it is possible now to do hyper local marketing targeted at specific customer," said Mahesh Murthy, founder Pinstorm, a leading digital marketing firm.
He added that with revenues worth Rs 800 crore, Google India is bigger than any television channel in the country.
It gets 100 million unique users every year in India, of which 70 million are on desktop, while the rest access it through mobile phones.
As online marketing opens up newer avenues and prospects of acquiring new clients, even major banks like HDFC have jumped on to the bandwagon. Soma Sharma, head, liability campaigns, HDFC Bank said that they launch 100 to 200 new online and digital campaigns every month.
"Nearly, 20-25 per cent of our new customers come in through online sources, either they visit our website or through any banner advertisements that we have put up at relevant websites. And if we talk about the quality of these new customers, they are almost two times better compared to those we acquire through offline modes like branches and agents," she added.
The business of buying online railway tickets is worth Rs 5,500 crore in India, while that of airline tickets is close to Rs 12,500 crore.
Experts felt that companies would have to increasingly come up with ways to manage the perception of brands more efficiently, and one has to do that continuously as perceptions and brands today change much faster than they used to.
"Earlier, we had time to test a creative for a soap commercial or campaign for three months, now three months can be the entire product lifecycle," Murthy said. He recalled one mobile handset company's demand of coming up with a creative within a week.
"When we asked for more time, they said they had to go live with the campaign in three weeks and that they would come up with their another handset within eight weeks. So that is all the time they had to sell this particular product," Murthy explains.
At the Confederation of Indian Industry (CII) conference on 'Best Marketing Practices', experts felt that no company could now possibly ignore the power of social networking sites in creating today's brands.
"Apart from search engines like google.com and yahoo.com, the next top sites in India are social networking sites like Facebook, Orkut, Twitter and Linkedin. Facebook users have increased nearly nine folds during last year, and now companies are sitting up and taking notice of the importance of advertising through such websites, especially when it is possible now to do hyper local marketing targeted at specific customer," said Mahesh Murthy, founder Pinstorm, a leading digital marketing firm.
He added that with revenues worth Rs 800 crore, Google India is bigger than any television channel in the country.
It gets 100 million unique users every year in India, of which 70 million are on desktop, while the rest access it through mobile phones.
As online marketing opens up newer avenues and prospects of acquiring new clients, even major banks like HDFC have jumped on to the bandwagon. Soma Sharma, head, liability campaigns, HDFC Bank said that they launch 100 to 200 new online and digital campaigns every month.
"Nearly, 20-25 per cent of our new customers come in through online sources, either they visit our website or through any banner advertisements that we have put up at relevant websites. And if we talk about the quality of these new customers, they are almost two times better compared to those we acquire through offline modes like branches and agents," she added.
The business of buying online railway tickets is worth Rs 5,500 crore in India, while that of airline tickets is close to Rs 12,500 crore.
Experts felt that companies would have to increasingly come up with ways to manage the perception of brands more efficiently, and one has to do that continuously as perceptions and brands today change much faster than they used to.
"Earlier, we had time to test a creative for a soap commercial or campaign for three months, now three months can be the entire product lifecycle," Murthy said. He recalled one mobile handset company's demand of coming up with a creative within a week.
"When we asked for more time, they said they had to go live with the campaign in three weeks and that they would come up with their another handset within eight weeks. So that is all the time they had to sell this particular product," Murthy explains.
GDP growth revised to 8% for FY10
GDP growth revised to 8% for FY10
New Delhi: The Central Statistical Organisation on Monday revised growth in the gross domestic product (GDP) for 2009-10 to 8% from the previous 7.4% due to robust growth in manufacturing and services sectors. The government also revised the GDP growth for 2008-09 marginally to 6.8% from the previously announced 6.7%.
The per capita income at 2004-05 prices is estimated at Rs 33,731 for 2009-10, up from Rs 31,801 in 2008-09, showing an increase of 6.1%. Per capita income at current prices rose 14.5% to Rs 46,492 in 2009-10 compared to Rs 40,605 crore in the previous fiscal. Per capita income refers to the earnings of each citizen in the country if the national income is equally divided among the population. National income or the size of the economy rose 16.1% at current prices to Rs 60,95,230 crore compared to Rs 52,49,163 crore in 2008-09.
"The growth rate of 8% in the GDP during 2009-10 has been achieved due to high growth in transport, storage and communication (15%), community, social and personal services (11.8%), financing, insurance, real estate and business services (9.2%) and manufacturing (8.8%)," CSO said. Farm sector growth in 2009-10 stood at 0.4%, up from the 1% decline in 2008-09. It said the GDP estimates and other aggregates for the previous years have been revised due to the new wholesale price index with 2004-05 as the base as well as the revision in the index of industrial production.
GDP for 2009-10 at 2004-05 prices is estimated at Rs 44,93,743 crore compared to Rs 41,37,125 crore. Gross domestic saving (GDS) at current prices in 2009-10 is estimated at Rs 22,07,423 crore compared to Rs 17,98,347 crore in 2008-09. In absolute terms, the household sector savings increased from Rs 13,31,033 crore in 2008-09 to Rs 15,36,071 crore in 2009-10, the savings of private sector rose from Rs 4,38,376 crore in 2008-09 to Rs 5,31,403 crore in 2009-10 and that of public sector increased from Rs 28,938 crore in 2008-09 to Rs 1,39,949 crore in 2009-10, data showed.
The economy is expected to grow 8.5% in the current fiscal but some policymakers say it could reach 9%. It has grown 8.9% in the past two quarters of the current fiscal year.
New Delhi: The Central Statistical Organisation on Monday revised growth in the gross domestic product (GDP) for 2009-10 to 8% from the previous 7.4% due to robust growth in manufacturing and services sectors. The government also revised the GDP growth for 2008-09 marginally to 6.8% from the previously announced 6.7%.
The per capita income at 2004-05 prices is estimated at Rs 33,731 for 2009-10, up from Rs 31,801 in 2008-09, showing an increase of 6.1%. Per capita income at current prices rose 14.5% to Rs 46,492 in 2009-10 compared to Rs 40,605 crore in the previous fiscal. Per capita income refers to the earnings of each citizen in the country if the national income is equally divided among the population. National income or the size of the economy rose 16.1% at current prices to Rs 60,95,230 crore compared to Rs 52,49,163 crore in 2008-09.
"The growth rate of 8% in the GDP during 2009-10 has been achieved due to high growth in transport, storage and communication (15%), community, social and personal services (11.8%), financing, insurance, real estate and business services (9.2%) and manufacturing (8.8%)," CSO said. Farm sector growth in 2009-10 stood at 0.4%, up from the 1% decline in 2008-09. It said the GDP estimates and other aggregates for the previous years have been revised due to the new wholesale price index with 2004-05 as the base as well as the revision in the index of industrial production.
GDP for 2009-10 at 2004-05 prices is estimated at Rs 44,93,743 crore compared to Rs 41,37,125 crore. Gross domestic saving (GDS) at current prices in 2009-10 is estimated at Rs 22,07,423 crore compared to Rs 17,98,347 crore in 2008-09. In absolute terms, the household sector savings increased from Rs 13,31,033 crore in 2008-09 to Rs 15,36,071 crore in 2009-10, the savings of private sector rose from Rs 4,38,376 crore in 2008-09 to Rs 5,31,403 crore in 2009-10 and that of public sector increased from Rs 28,938 crore in 2008-09 to Rs 1,39,949 crore in 2009-10, data showed.
The economy is expected to grow 8.5% in the current fiscal but some policymakers say it could reach 9%. It has grown 8.9% in the past two quarters of the current fiscal year.
Saturday, January 15, 2011
Two years from now, 7mn more rural homes to have LPG gas
NEW DELHI: The government will provide cooking gas connections to 7 million rural households, incurring an additional subsidy of Rs 2,700 crore a year to supply villages with the fuel that is predominantly sold in urban areas .
The government will also waive the upfront payment of Rs 1,400 for each customer and minimise paperwork to help villagers switch from firewood and kerosene to liquefied petroleum gas (LPG), two oil ministry official said.
The cabinet had rejected a similar proposal from the oil ministry about three months ago as some ministers were concerned about the subsidy and others demanded a simplified connections.
"The new proposal is made simple so that the poor in villages can get connections without any hassle," an official with direct knowledge of the matter said. The ministry has set a two-year target to connect seven million rural households.
The oil ministry has re-worked the scheme and the same is expected to be placed before the Cabinet for its approval by the end of this month, the official said requesting anonymity.
The oil ministry has argued that fear of subsidy should not deprive rural population from using the clean fuel. Officials said that total LPG subsidy in the current fiscal year is estimated to be Rs 32,000 crore, while the new scheme that would cheer rural people would increase it by only 8.4%.
"Today almost entire urban population is using subsidised LPG (liquefied petroleum gas). Why rural people should not get the same benefit?," a central minister, who did not want to be identified, said. The government must devise ways to exclude rich availing the highly subsidised fuel and it must extend the facility to the poor, the minister said. Fuel subsidy on kerosene, cooking gas and diesel is estimated at Rs 72,800 crore for 2010-11 .
"Local dealers are obliged to give gas connections to villagers by verifying their residence and other details," the official said. State-run oil companies and the ministry will monitor the scheme and any malpractice by dealers would cost them the dealership, the official added.
The government has proposed to provide the new connection along with first cylinder of cooking gas in rural areas at a total cost of just Rs 635 per unit.
The subsidy will be shared between the government and state-run oil companies, which can leverage their funds for corporate social responsibility (CSR). Public sector oil companies, including Indian Oil, Bharat Petroleum and Hindustan Petroleum, mandatorily spend 2% of their net profit on CSR activities. Their combined annual CSR kitty is estimated between Rs 800 and Rs 1,000 crore.
The government proposes to waive off the one-time security deposit of Rs 1,250 for the connection and Rs 150 for the regulator. The beneficiary will pay about Rs 635 per unit for other services, including the cost of a 14.2 kg gas cylinder, which costs approximately Rs 350.
The oil ministry has set a target to provide 10 million (1 crore) new gas connections, mostly in villages, every year till 2015. As per the ministry data, state-run oil companies have so far provided 8.5 million connections this year.
Penetration of clean cooking fuel like piped natural gas (PNG) and liquefied petroleum gas (LPG) will also help the government in proportionately reducing supply of highly subsidised kerosene, which is often misused for adulterating costly fuel such as diesel, an official in the ministry said.
The government will also waive the upfront payment of Rs 1,400 for each customer and minimise paperwork to help villagers switch from firewood and kerosene to liquefied petroleum gas (LPG), two oil ministry official said.
The cabinet had rejected a similar proposal from the oil ministry about three months ago as some ministers were concerned about the subsidy and others demanded a simplified connections.
"The new proposal is made simple so that the poor in villages can get connections without any hassle," an official with direct knowledge of the matter said. The ministry has set a two-year target to connect seven million rural households.
The oil ministry has re-worked the scheme and the same is expected to be placed before the Cabinet for its approval by the end of this month, the official said requesting anonymity.
The oil ministry has argued that fear of subsidy should not deprive rural population from using the clean fuel. Officials said that total LPG subsidy in the current fiscal year is estimated to be Rs 32,000 crore, while the new scheme that would cheer rural people would increase it by only 8.4%.
"Today almost entire urban population is using subsidised LPG (liquefied petroleum gas). Why rural people should not get the same benefit?," a central minister, who did not want to be identified, said. The government must devise ways to exclude rich availing the highly subsidised fuel and it must extend the facility to the poor, the minister said. Fuel subsidy on kerosene, cooking gas and diesel is estimated at Rs 72,800 crore for 2010-11 .
"Local dealers are obliged to give gas connections to villagers by verifying their residence and other details," the official said. State-run oil companies and the ministry will monitor the scheme and any malpractice by dealers would cost them the dealership, the official added.
The government has proposed to provide the new connection along with first cylinder of cooking gas in rural areas at a total cost of just Rs 635 per unit.
The subsidy will be shared between the government and state-run oil companies, which can leverage their funds for corporate social responsibility (CSR). Public sector oil companies, including Indian Oil, Bharat Petroleum and Hindustan Petroleum, mandatorily spend 2% of their net profit on CSR activities. Their combined annual CSR kitty is estimated between Rs 800 and Rs 1,000 crore.
The government proposes to waive off the one-time security deposit of Rs 1,250 for the connection and Rs 150 for the regulator. The beneficiary will pay about Rs 635 per unit for other services, including the cost of a 14.2 kg gas cylinder, which costs approximately Rs 350.
The oil ministry has set a target to provide 10 million (1 crore) new gas connections, mostly in villages, every year till 2015. As per the ministry data, state-run oil companies have so far provided 8.5 million connections this year.
Penetration of clean cooking fuel like piped natural gas (PNG) and liquefied petroleum gas (LPG) will also help the government in proportionately reducing supply of highly subsidised kerosene, which is often misused for adulterating costly fuel such as diesel, an official in the ministry said.
Tata Motors global sales up 21 pc in Dec; JLR flat
NEW DELHI: Tata Motors today said its global sales increased by 21 per cent in December 2010 to 90,294 units on robust demand for commercial vehicles but sales of luxury brands from Jaguar Land Rover remained flat.
Jaguar Land Rover sales were at 21,353 units during December, up just one per cent from the same month in the previous year, Tata Motors said in a statement.
While sales of luxury sedans of Jaguar brand was down by 10 per cent last month at 4,332 units, Land Rover sales was up by 4 per cent at 17,021 units, it added.
Commercial vehicles sales were higher by 29 per cent to 48,168 units from the same month a year ago, it said.
Total passenger vehicle sales stood at 42,126 units in December 2010, up 13 per cent from the corresponding month of the previous year, the company said.
The Tata Motors Group global sales comprises Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with the distributed brands in India--Jaguar and Land Rover.
During the April-December period, total global vehicle sales rose 29 per cent at 7,68,834 units.
While total passenger vehicle sales increased by 30 per cent at 4,06,157 units, commercial vehicle sales jumped 29 per cent at 3,62,677 units in the first nine months of this fiscal.
Jaguar Land Rover sales were at 21,353 units during December, up just one per cent from the same month in the previous year, Tata Motors said in a statement.
While sales of luxury sedans of Jaguar brand was down by 10 per cent last month at 4,332 units, Land Rover sales was up by 4 per cent at 17,021 units, it added.
Commercial vehicles sales were higher by 29 per cent to 48,168 units from the same month a year ago, it said.
Total passenger vehicle sales stood at 42,126 units in December 2010, up 13 per cent from the corresponding month of the previous year, the company said.
The Tata Motors Group global sales comprises Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with the distributed brands in India--Jaguar and Land Rover.
During the April-December period, total global vehicle sales rose 29 per cent at 7,68,834 units.
While total passenger vehicle sales increased by 30 per cent at 4,06,157 units, commercial vehicle sales jumped 29 per cent at 3,62,677 units in the first nine months of this fiscal.
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.
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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