India’s largest airline, the low-cost carrier IndiGo, booked a firm order for 500 new A320 aircraft, the largest single purchase agreement in the history of commercial aviation, according to Airbus. While Airbus did not announce the order’s value, it’s estimated to be worth up to $50 billion based on list prices for the narrow-body aircraft series. The actual value is likely to be less when discounts are applied.
The A320 remains the world’s top-selling aircraft series, a title it has held for the past two years.
The historic contract was announced at the ongoing 2023 Paris Air Show, an event marked by multiple announcements of large-volume orders for Airbus and its primary rival Boeing. Both jet builders are enjoying the advantages of being the only reliable sources of new aircraft in a global market beset with aging and/or inefficient capacity amid a robust growth forecast.
According to Airbus chief commercial officer Christian Scherer, “This landmark order marks a new chapter in Airbus and IndiGo’s relationship that is democratizing affordable air travel for millions of people in the world’s fastest growing aviation market. It is also a resounding endorsement of the A320 family’s best-in-class operating economics that have been powering IndiGo’s growth for almost two decades.”
IndiGo will have a total of 1,330 A320 jets once the order is completed, making it the world’s largest operator for the Airbus series. Currently, the carrier is operating 264 A320s – 162 A320neos, 79 A321neos, 21 A320ceos and two A321 freighters. It also had previous orders in place for over 300 Airbus jets.
“It is difficult to overstate the significance of IndiGo’s new historic order for 500 Airbus A320 family aircraft,” stated the carrier’s CEO Pieter Elbers. “An order book now of almost 1,000 aircraft well into the next decade enables IndiGo to fulfil its mission to continue to boost economic growth, social cohesion, and mobility in India.”
