Updated: October 15, 2014 9:55:35 pm
Even as Air India and several private carriers in India continue to count losses, IndiGo Airlines on Wednesday announced an agreement with Airbus for 250 planes worth over $25 billion (Rs 1,55,000 crore), to be delivered over seven years beginning 2018.
In what is being termed as the biggest order (in terms of aircraft numbers) for the European manufacturer, this will take care of the domestic carrier’s future growth plans. An MoU was signed at the Airbus headquarters in Toulouse, France, for 250 A320 neo Family aircraft.
“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,” said Aditya Ghosh, IndiGo president.
While the airline industry in India saw the forced exit of Kingfisher Airlines, after it ran huge debts amounting to over Rs 7,000 crore, IndiGo remains the only airline to report profits. For the year ended March 2014, the airline reported a net profit of Rs 317 crore, down by 60 per cent over Rs 787 crore reported in March 2013.
This is the third order placed by IndiGo with Airbus till date. It first placed an order for 100 aircraft in 2005, of which the 100th airline will be delivered in November this year. In 2011, it ordered another 180 aircraft, the delivery of which will start next year.
The aircraft taken on lease are in service with the carrier for seven years and 16 planes have already been taken out of service after having completed seven years of service. The airline currently has a fleet size of 83 planes.
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