IndiGo orders 300 Airbus A320neo planes in one of its largest deals ever

IndiGo’s total number of A320neo family aircraft order now stands at 730, the airline said in a statement.

This is one of Airbus largest aircraft orders ever with a single airline operator, the airline said.

IndiGo on Tuesday said it has placed a firm order for 300 A320neo family aircraft with planemaker Airbus, comprising A320neos, A321neos and A321XLRs. IndiGo’s total number of A320neo family aircraft order now stands at 730, the airline said in a statement.

“This order is an important milestone, as it reiterates our mission of strengthening air connectivity in India, which will in turn boost economic growth and mobility. India is expected to continue with its strong aviation growth and we are well on our way to build the world’s best air transportation system, to serve more customers and to deliver on our promise of providing low fares and a courteous, hassle free experience to them,” said Ronojoy Dutta, CEO of IndiGo.

This is one of Airbus largest aircraft orders ever with a single airline operator, the airline said. Shares of IndiGo closed down 2.64 per cent at Rs 1,415 at the National Stock Exchange Tuesday. “The fuel-efficient A320neo family aircraft will allow IndiGo to maintain its strong focus on lowering operating costs and delivering fuel efficiency with high standards of reliability. The choice of engine manufacturer for this order will be made at a later date,” said Riyaz Peermohamed, Chief Aircraft Acquisition and Financing Officer of IndiGo. The aircraft order comes days after IndiGo reported its biggest quarterly loss. InterGlobe Aviation, which runs low-cost airline IndiGo, last Thursday reported higher-than-expected losses of Rs 1,062 crore in the July-September period due to higher expenses.

The costs related to aircraft repair and maintenance nearly doubled to Rs 153 crore, while depreciation and amortisation costs grew more than fivefold to Rs 1,029 crore. The current losses were up 63 per cent YoY, compared to Rs 651-crore Q2FY19 loss.

IndiGo, which had a fleet of 245 aircraft at the end of September 2019, added seven new domestic routes and six international destinations during Q2FY19. The airline has benefited from closure of Jet as it received more than 40 slots at the busy Delhi and Mumbai airports. The airline commanded a domestic market share of 47.7 per cent during Q2FY20 as compared to 42.4 per cent a year ago. The airline’s two co-founders, Rakesh Gangwal and Rahul Bhatia, have been embroiled in a dispute about corporate governance of the airline.