India's IndiGo Orders 250 Airbus Jets Worth About $26bn

Indian budget carrier IndiGo has ordered 250 single-aisle A320neo jets from Airbus, the company said on 15 October, possibly marking the largest aircraft order for the European planemaker.

The deal will be worth $25.7bn (£16.1bn, €20.3bn) at list prices, but airlines usually get a discount and the memorandum of understanding (MoU) between the parties must still be confirmed as firm orders.

The provisional deal extends Airbus's lead over rival Boeing in the Indian market, one of the world's fastest growing aviation markets.

If confirmed in the coming months, the order could close a global deficit in orders versus its American rival for the first nine months of 2014.

Aditya Ghosh, President of IndiGo said: "This new order reaffirms IndiGo's commitment to the long-term development of affordable air transportation in India and overseas. The additional aircraft will enable us to continue to bring our low fares and courteous, hassle free service to more customers and markets and will create more job opportunities and growth..."

Fabrice Bregier, Airbus President and CEO said: "The A320neo continues to dominate world market share and this commitment confirms the A320 Family as the aircraft of choice in the most dynamic aviation growth markets..."

Reuters reported on 14 October that Indigo could purchase smaller regional planes and widebody long-haul jets, in addition to the narrow body A320s.

IndiGo had a 32.6% market share in August. The carrier has a fleet of 83 A-320s and operates over 500 daily flights to over 30 destinations in India and five abroad.

Prior Orders

In June, British budget carrier easyJet ordered 35 current-generation A320 aircraft and 100 new-generation A320neo jets from Airbus, in a deal valued at about $11.5bn at list prices. The airline also secured options to buy a further 100 new-generation A320neo jets in future.

In March, Singapore's Tiger Airways placed an order for 37 Airbus A320neo aircraft, taking delivery of the planes between 2018 and 2025. The deal was worth $3.8bn at list prices.

In February, China Eastern Airlines, among the nation's top three carriers, ordered 70 A320neo planes, marking a huge victory for Airbus that has been marketing the upgraded variant of its popular A320 jet to Chinese buyers.

That deal was worth $6.37bn.