IndiGo pits Boeing against Airbus in record jet order talks: Report

Industry sources said Indian budget carrier IndiGo is in talks with both Boeing and its current supplier Airbus to order over 500 passenger jets, potentially breaking the industry record set by domestic rival Air India.

India’s biggest airline has so far been an exclusive buyer of narrow-body jets from Airbus and French Finance Minister Bruno Le Maire said last month that IndiGo was close to ordering several hundred planes from the European planemaker.

Read here: Air India orders 840 aircraft including 370 optional purchases from Airbus, Boeing

But talks have also broadened since the end of the decade to renew the budget carrier’s fleet to include mid-size wide-body jets, sparking a competition between Boeing’s 787 Dreamliner and the advanced Airbus A330neo. , sources said.

He said InterGlobe Aviation Ltd-owned IndiGo is also comparing the A320 Neo to the Boeing 737 Max as it weighs a major new order for the narrow-body jets. The division between wide- and narrow-body jets was not immediately clear.

An Indigo representative told Reuters the airline is in ongoing talks with manufacturers as it plans its next phase of development. “However, we have not decided anything yet.”

Airbus declined to comment on any talks, saying it was “always in touch with existing and potential customers”. There was no immediate comment from Boeing.

IndiGo, which has a 55% share in the domestic market, is widely expected to retain Airbus as its supplier of narrow-body jets in a bid to squeeze economies of scale.

It is already one of Airbus’ largest customers and has ordered a total of 830 Airbus A320-family jets so far, of which 488 are yet to be delivered.

But Indian analysts say Airbus will face an uphill battle for wide-body orders. Shifting from its single-aisle strategy, IndiGo last month began international operations with the Boeing 777, its first wide-body aircraft, taken over from codeshare partner Turkish Airlines, which provides pilots.

record demand

Indian carriers’ efforts to keep pace with the world’s fastest-growing aviation market, which is soon set to become the largest by population, has shattered industry records, even as manufacturers struggle to meet production targets. are struggling

Tata-owned Air India last month signed deals for a record 470 jets from Airbus and Boeing and plans to lease another 25 for immediate needs, taking its acquisition to 495 aircraft.

The head of budget airline Akasaka Air told Reuters last month that it would place a “substantially” large order for new narrowbody jets this year on top of existing Boeing 737 Max orders.

Industry publication CAPA reported last month that IndiGo was looking at around 500 jets as Air India called off its deal.

Indian aviation has in the past been under the scanner for airline failures, weak infrastructure and questions over the rights of foreign leasing companies stepping in to finance sales.

Read here: Cochin to Delhi Indigo flight diverted to Bhopal due to medical emergency

While analysts warn that the market could overheat again, Dublin-based Avalon, one of the largest lessors, said consolidation and airport upgrades have improved the outlook and India is a key growth destination. The source is created.

IndiGo started operations in 2006 and started flights to more than 75 Indian cities including remote destinations in the Northeast of the country. It flies internationally to nearby destinations including Dubai, Singapore, Hanoi and the Maldives and is expanding into Europe through its partnership with Turkish Airlines.