IndiGo places order for 30 A350-900 aircraft: Airbus

Airbus on Monday said IndiGo has placed a firm order for 30 A350-900 planes. On April 25, IndiGo said it had agreed to place a firm order for 30 A350-900 aircraft, marking the budget carrier's entry into the wide-body segment.

"India, the world's fastest growing major aviation market, is on the verge of an international travel boom as the economy grows and household incomes rise," Airbus said in a release. "The A350 is perfectly positioned to serve the country's aspirations for long-range travel," it said.

The financial details of the transaction were not disclosed. The A350 is the world's most modern and efficient wide-body aircraft in the 300-410 seater category, the release added. Industry analysts believe this strategic fleet expansion by IndiGo is aimed at capturing a larger share of the growing international travel market by offering non-stop flights from India to various global destinations.

The financial details of the agreement haven't been disclosed; however, estimates suggest the order could be valued around $5 billion. This move by IndiGo reflects the burgeoning aviation market in India, fueled by a strong national economy and rising household incomes, which translates to an increased demand for international travel.

While IndiGo has established itself as a dominant player in the Indian domestic market with its fleet of Airbus A320 family aircraft, this order for A350s signifies a potential shift in its focus. The acquisition opens doors for the airline to explore new long-haul routes and compete with established players in the international travel space. The success of this project will depend on factors like route selection, pricing strategy, and passenger reception to IndiGo's long-haul services.

At 10:12 AM, shares of IndiGo traded 4.70% higher at ₹4,002.95 apiece on NSE on 7 May, 2024.

With inputs from PTI.