IndiGo’s Jaw-Dropping Airbus A320neo Order

IndiGo is already India’s largest airline in terms of the size of their fleet, and the airline has announced a further massive expansion this week.

IndiGo Orders Further 300 A320neo Aircraft

IndiGo has placed a firm order this week for 300 Airbus A320neo family aircraft, making it one of the largest aircraft orders ever with a single airline operator. At list prices (which are just about never paid), this order is worth about 33 billion USD.

This order includes A320neos, A321neos, and A321XLRs, though the exact breakdown by plane hasn’t yet been revealed.

What’s even more amazing here is that this new A320neo order complements the existing A320neo order that the airline had already placed (they took delivery of their first neo aircraft in March 2016). Prior to this, IndiGo had already ordered 430 Airbus A320neo aircraft family, including:

  • 280 Airbus A320neos (97 of which they already have in their fleet, making them the world’s largest A320neo operator already)
  • 150 Airbus A321neos (fewer than a dozen of which have been delivered so far)

That means in total, IndiGo will have ordered a total of 730 Airbus A320neo aircraft, between their previous order and their new one.

As Ronojoy Dutta, IndiGo’s CEO, describes this move:

“This order is an important milestone, as it reiterates our mission of strengthening air connectivity in India, which will in turn boost economic growth and mobility. India is expected to continue with its strong aviation growth and we are well on our way to build the world’s best air transportation system, to serve more customers and deliver on our promise of providing low fares and a courteous, hassle free experience to them.”

What Makes This IndiGo Order So Interesting

There are a couple of reasons I take interest in this order, beyond the sheer number of planes we’re talking about (I can’t think of another airline that has ever ordered 730 of one aircraft type).

First of all, IndiGo has ordered the A321XLR, which is Airbus’ new ultra long range A321, with a range of up to 4,700nm, and 30% lower fuel burn than previous generation competitor aircraft.

This will by far be IndiGo’s longest range aircraft, and will enable further growth to China, Southeast Asia, Europe, etc. IndiGo has bases all around India, but looking at Mumbai for example, here’s a map with the range of the aircraft:

As you can see, this plane puts a lot of destinations within range (though in fairness, the range doesn’t factor in headwinds and fuel reserves, so planes can’t actually fly quite as far as the range suggests).

Second of all, it’s pretty noteworthy the pace at which IndiGo is growing. The concept of slow and steady winning the race seems to be lost here. 😉

India is historically a really tough aviation market, despite the rate at which demand is growing. We see Air India constantly on the brink of liquidation, we saw Jet Airways go out of business, and we see other low cost carriers struggling.

IndiGo is doing a pretty great job, all things considered, though their current plan sure seems… ambitious.

Bottom Line

It’s incredible to see IndiGo order an additional 300 A320neo family aircraft, bringing their total order of these types of planes to 730. The sheer growth here is exciting to see, and I’m also curious what they do with the A321XLRs.

IndiGo will be an airline to watch in the coming years, even more than now…

What do you make of IndiGo’s Airbus order?

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Nalin Chandra Guest

IndiGo's business strategy revolves around 'Hedging, sale-purchase, and leaseback.' It clearly understands that operating an aircraft doesn't make a profit. There is no way, howsoever efficient, in which one can achieve a profit here. One major breakdown or one engine change can wipe out all such minuscule profit. So, it is prudent to indulge in sale-purchase. Let Airbus be loaded with IndiGo orders only. Let other airlines stay on the waiting list till eternity. When any airline shows a pressing need, make yourself available for sell/lease at a hefty premium. India does not want to invest in Aircraft manufacturing. It lets Airbus/Boeing do it. Indian airlines flood them with orders. A situation has reached wherein without such Indian orders and the associated advance money it gets, Airbus starts staring at bankruptcy!

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Jeevan Raj Halonen Guest

I think that the A32X series aircrafts are good enough for domestic destinations and short international destinations which take 2 to 4 hours flight time. Beyond 4 hours definitely the passengers won't feel comfortable. It will be a huge letdown for Indigo's International flights. People may afford little more for some other International Airline connectivity instead of Indigo flights. I wonder how people are travelling to Istanbul from Delhi and Mumbai on Indigo A320 Aircrafts whose seats are not comfortable for long duration. I wish Indigo makes plans to have at least some Airbus A350s and Boeing 787 Dreamliners in their fleet for long-haul flights in near future.

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Kyall Guest

Jeez, West Coast of Australia is going to get infested by these planes with cashed up middle cLass Indians moving in and doing business, university etc. Which I think is great. i Won't be doing PER-BOM-LHR on one of these planes though. Good luck to them

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pat Guest

great. i flew them recently for the first time and was super impressed.

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Richard Guest

I wonder are they looking to become a budget-priced long-haul connecting-airline, firmly focused on economy-passengers rather-than freight or Premium-flyers, and hubbing in India rather than the Gulf ? But also feeding longer-haul to/from India itself as-well ? The XLRs suggest to my mind that this might be so. In which case I guess we'll have to get used to flying in 3-3 narrow-bodied planes, rather than the familiar 3-4-3 wide-bodied ones, maybe it's not such a big jump as we've always believed, if the price is right ? Although I'd hope for IFE & basic-meals on longer-haul, but maybe they'll follow the Norwegian LCC-model faithfully, it will be interesting to see ! Then again perhaps they plan to copy Air-Asia & Lion-Air, and create local-subsidiaries eventually, overseas ?

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