Paris Air Show: Airbus announces a record order of 500 planes by the Indian company IndiGo

2023-06-19 16:46:31

Airbus strikes a blow at the opening of the Paris Air Show. The Franco-German manufacturer formalized, this Monday afternoon, June 19, a mega order for 500 single-aisle aircraft from the A 320 family by the Indian company IndiGo, for 50 billion dollars (47 billion euros) at the list price. But discounts have certainly been negotiated, as is customary in this kind of deal.

“We are very proud. This transaction symbolizes the immense potential of the Indian market. This is just the beginning,” said Christian Sherer, Airbus Chief Commercial Officer. “This order confirms our company’s ambition. We will have 1,300 devices in the next two decades,” said Pieter Elbers, CEO of IndiGo, a low-cost company.

This is an absolute record in the aeronautics sector, four months after the previous one. In February, Air India, another Indian company, announced that it was renewing and expanding its fleet with 470 planes, divided between Airbus (250) and its competitor Boeing (220). The European manufacturer plans to announce other orders, “smaller than this one”, on Tuesday and throughout the week. Already on Monday, Air Maurice confirmed the order for three A 350s.

The first device delivered from 2030

For IndiGo, an Airbus customer for 18 years, these latest-generation aircraft must meet demand in its growing and highly strategic domestic market. India, which has 1.4 billion inhabitants, is already the third largest air transport market in the world after the United States and China.

According to Airbus projections, it will grow by just over 6% over the next two decades, a rate twice as high as the world average. The Indian market should be multiplied by four by 2041 to reach 641 million passengers, still according to forecasts from the European aircraft manufacturer. “We want to build a long-term relationship with IndiGo and participate in the development of the market”, insisted Christian Sherer.

All that remains now is to produce the planes. Airbus should be able to deliver the first aircraft of this order from 2030, at best. “We have always said that it was the first slot available for new orders”, we confide to the group’s management.

Since the health crisis, the manufacturer has struggled to increase its production rates. “The supply chain is very tight, small suppliers are experiencing difficulties. We are watching this very closely, underlines an executive. Our objective today is first of all to try to keep our commitments, rather than to accelerate the pace of production. The situation should continue next year before a gradual “ramp up” and a return to normal from 2025.