Budget carrier IndiGo has entered into a $2.6-billion (₹15,384 crore) deal with Industrial & Commercial Bank of China (ICBC) for financing the purchase of over 30 aircraft.
The two parties have signed a memorandum of understanding in the backdrop of Chinese Premier Xi Jinping’s ongoing state visit to India.
A320 inductionIn a press statement, Aditya Ghosh, IndiGo’s President, said: “Through this MoU, ICBC will provide IndiGo financial solutions for the introduction of A320 and the other family of aircraft to the fleet in the form of sale and lease back or financial lease or commercial lending.”
Further, Ghosh added that the no-frills carrier has worked with ICBC in the past and that the latest agreement will ‘cement the relationship for the longer term’.
Indian carriers have been augmenting their fleet strength in order to compete with new entrants such as Air Asia, Air Costa and Vistara.
ICBC is said to be one of the largest banks in the world by total assets and market capitalisation.
In 2013, it topped the Forbes Global 2000 list of world’s biggest public companies.
IndiGo — largest airline in India by number of passengers carried — currently has a fleet of 81 Airbus A320 aircraft. It is one of the few profitable carriers in the country.