IndiGo places order for 250 Airbus NEO aircraft

Low-cost airline IndiGo has signed a memorandum of understanding for the purchase of 250 Airbus NEO (New Engine Option) aircraft.

At $102 million per plane, the contract is worth $25.5 billion. Delivery of the aircraft will start in 2018 and will continue until 2026, IndiGo President Aditya Ghosh told BusinessLine .

It is not uncommon for aircraft manufacturers to lower their selling price when such large orders are signed and this could also happen in the case of IndiGo, too. “IndiGo has also secured purchase rights for another 100 aircraft. We have till the next few years to decide on whether we go in for these 100 aircraft or not,” Ghosh said.

Domestic, international mix The 250 new aircraft will be used to operate a mix of domestic and international flights, Ghosh added. The IndiGo President, however, said it would be difficult to give a clear indication of the split — how many aircraft would be deployed for domestic flights and likewise for international flights — as their induction is several years away.

The latest agreement was signed at the Airbus Headquarters in Toulouse. It is Airbus’ single largest order by number of aircraft, a statement said.

IndiGo will be paying Airbus a premium for these aircraft as the NEO promises 15 per cent fuel savings, noise reduction and lower maintenance and operating costs, among other benefits.