IndiGo today finalised its agreement to acquire 180 planes from Airbus at the Paris Air show.
The low-cost carrier confirmed that it would purchase 150 A320 NEOs and 30 A320s, following a memorandum of understanding that was signed in January, in a deal valued at around $16 billion. The airline is yet to select the engine provider.
The A320 NEO – new engine option – will be available from 2015. IndiGo has already ordered 100 A320s, of which 44 have been delivered.
“Our existing order for 100 A320s and the order announced today will help meet India's growing flying market, in the most cost efficient and environmentally responsible way possible,” said Mr Aditya Ghosh, IndiGo's President.
The deal came as Airbus announced a string of orders for the plane including a $7-billion deal with Indiana-based Republic Airways, while JetBlue placed an order for 40 aircraft on Tuesday.
Our Delhi Bureau adds:
“We will get the aircraft in 2015. Airbus is working hard to accommodate us,” Mr Ghosh said from Paris, shortly after signing the deal.
Airbus will look at the option of sale-and-lease for payment for the 180-aircraft order.
Sources indicated that IndiGo is likely to receive delivery of its aircraft 9-12 months earlier than what was planned originally.
The airline expects to complete the induction of all 180 aircraft by 2024. It is also examining the option of taking delivery of some of the A321 in place of the A320. The A321 aircraft carries about 190 passengers in a 2-class configuration and a A320 carries about 145.
IndiGo could pay a premium of $900 million for the 150 NEO aircraft. Airbus charges a premium of $6.2 million for each NEO on the Airbus A-319, A-320 and A-321 aircraft.
According to Airbus, the premium is charged as the NEO promises 15 per cent fuel burn savings among other benefits such as noise reduction and lower maintenance and operating costs.
The delivery of the new aircraft is expected to begin in 2016.