Indian airlines are on a shopping spree. Here’s proof - Business News, Finance News, Share Market News - Market trendz

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Tuesday 30 April 2024

Indian airlines are on a shopping spree. Here’s proof

The Indian aviation industry is experiencing a surge in air travel demand, prompting airlines to invest in expanding their fleets through substantial aircraft orders.

The most recent development involves IndiGo, placing an order for 30 A350-900 widebody aircraft from European manufacturer Airbus on April 25, 2024.

The deal, estimated to range between $4 billion and $5 billion, marks IndiGo's first purchase of widebody planes for its operations.


IndiGo currently operates two B777 aircraft, which are on lease from Turkish Airlines. The airline stated that the exact configuration of the A350-900 aircraft will be determined later, with deliveries scheduled to commence from 2027.

Additionally, IndiGo has purchase rights for an extra 70 Airbus A350 family aircraft for potential future needs under specific conditions .

Over the past 15 months, Indian carriers have collectively ordered 1150 aircrafts to meet the rising demand for air travel in the country.

Earlier, in February 2023, the Tata-run Air India Group made headlines with an order for 470 planes — 250 from Airbus and 220 from Boeing. Media reports estimate the value of this order to be around $70 billion.

The order comprises 470 firm aircraft along with 370 options and purchase rights to be procured over the next decade from both Airbus and Boeing.

IndiGo also made headlines in June 2023 with the world's largest aircraft order, securing 500 A320neo family planes from Airbus. The delivery of these aircraft is expected between 2030 and 2035.

Although the list price for this order stands at $55 billion, actual sale prices, typically undisclosed, are usually lower.

Further expanding the fleet, the new airline Akasa Air placed an order for 150 Boeing 737 MAX aircraft in January 2024, valued at approximately $20 billion based on current list prices.

This order includes a mix of 737 MAX-8 and 737 MAX-10 variants, accommodating up to 230 passengers per aircraft.

In total, the orders placed over the past 15 months, including purchase rights, sum up to 1590 aircrafts, underlining the industry's commitment to meeting the growing air travel demand in India.

With the country witnessing a surge in air travel demand and plans to establish new airports, the trajectory suggests that aircraft orders may continue to climb in the coming years.

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