dailyO
News

What IndiGo and Air India ordered at Paris Air Show shopping spree: A breakdown

Advertisement
Sushim Mukul
Sushim MukulJun 21, 2023 | 13:07

What IndiGo and Air India ordered at Paris Air Show shopping spree: A breakdown

Airlines are now moving towards procuring more fuel efficient jets. (Photo: Indigo/AirIndia/ Paris Air Show)

Indian carriers, looking to dominate the skies, went on a shopping spree at the 54th edition of the Paris Air Show being held at the Paris Le Bourget Airport this year.

  • Relying on a growing economy and a burgeoning middle class, IndiGo and Air India, who have placed orders for about 1,000 jets in total, are looking to serve the increased domestic appetite for air travel and capture a larger piece of the global market. According to reports, Akasa Air also placed an order for four more 737-8s at the air show, bringing their total order with Boeing from the original 72 to 76 aircraft in order to expand into foreign markets.
Advertisement
Landmark passenger aircraft deals. (Credits: Sumanta Sen/Reuters Graphics)
  • According to the Centre for Aviation (CAPA)Indian domestic passengers are expected to reach 350 million by 2030, from 144 million in 2019.
  • Likewise, overseas air travellers are expected to reach 160 million in 2030, from 64 million in 2019.

IndiGo's record deal

  • It started with the Indian aviation giant IndiGo creating a stir with their huge order of 500 Airbus single-aisle aircraft (A320 family) worth $500 billion.
  • A321XLRs with a range of 8,700 km are also included in the contract, and they will allow the airline's network to go further into Southeast Asia and European destinations.
  • The order on Jun 19, 2023, became the largest-ever single aircraft purchase by any airline in the world. However, the engine (Pratt & Whitney or General Electric) has not been finalised yet.
  • The jets are expected to be delivered in a phased manner between 2030 and 2035.
  • This deal is above the airline's earlier deal of around 480 narrowbodies from Airbus.
  • Also, IndiGo is in talks with both Airbus and Boeing, planning to buy around 25 wide-bodied aircraft, probably to fly to American destinations in the future.
  • IndiGo's inclination towards narrowbody jets, specifically for short and medium-haul flights, has been particularly strong.
Advertisement

Air India's mega order

  • The very next day (June 20), the Tata-owned Air India, to renew and expand its fleet, ordered a mix of 470 Airbus and Boeing jets. The deal was finalised for $70 billion.
  • Among the 470, Air India expects 250 jets from Airbus, including 210 A320neo and A321neo narrowbody jets, along with 40 A350 long-haul widebodies.
  • Boeing's portion involves a total of 220 aircraft, with 190 narrow-bodied aircraft comprising 737 MAXs, 20 787 Dreamliners; and 10 777X in the widebody segment.
  • Splitting capacity-wise, the Maharaja will have a share of 400 narrowbodies and 70 widebodies out of the order.
  • The Tata-owned carrier is expected to receive its first batch of long-haul A350s by the end of this year.
  • This strategic move positions Air India to operate the most advanced and fuel-efficient aircraft across its route network within five years.
Advertisement

According to Reuters, Indian carriers now have the second-largest order book, with over 6% of the industry's backlog, behind only the United States.

Last updated: June 21, 2023 | 17:10
IN THIS STORY
    Please log in
    I agree with DailyO's privacy policy