IndiGo, India's largest airline, has confirmed the purchase order from Airbus Group SE 250 single-aisle A320neo, strengthening the leading position on the French aircraft manufacturer Boeing Co. budget air travel market in the country.
The order for Airbus is the largest in number, aircraft manufacturer said in a statement via e-mail on Monday, August 17th. In view of the order IndiGo, Airbus order book of more than 4100 aircraft A320neo, the company said in a statement.
The order can be estimated at $ 26.6 billion, based on the stated price in the price list. Airlines often get a discount for bulk orders of aircraft.
Step IndiGo underlines the growth plans of the budget carrier, which has a 38% share in the local market. Buying corresponds to the ambitious plans of the other low cost Asian carriers that extend service the growing middle class in the rapidly expanding aviation market.
India and China are among the fastest growing markets for the Airbus and its rival Boeing Co., as both predict that Asia will overtake the US as the world's largest aviation market for two decades. India requires 1,290 new aircraft worth $ 190 billion by 2032 to meet the demand for air travel, said the European aircraft manufacturer in March 2014.
1000 aircraft
In January 2011, IndiGo ordered 180 aircraft from Airbus in the amount of $ 15 billion, which at that time represented the largest order in the history of commercial aviation. The company aims to increase its fleet of jet aircraft up to 1000. Since airline has received more than 100 aircraft in the framework of the order.
IndiGo, Go Airlines India Pvt., Local units AirAsia Bhd. and Singapore Airlines Ltd. fly solely on airplanes Airbus. Air India Ltd., Jet Airways India Ltd. and SpiceJet Ltd. operated as airplanes Airbus, and Boeing.
IndiGo belongs InterGlobe Enterprises Ltd., which has its origins in the travel company based Kapil Bhatia in 1964. IndiGo started to carry out air in 2006, one year after placing an order for 100 Airbus A320 aircraft worth $ 6 billion. The carrier uses a model of the "sale and leaseback", under which it sells aircraft lessors, flying them for six years, and then gives them so that his park is always fresh.
Introduced in 2010, A320neo equipped with new engines and has become the best-selling airliner in history.
IndiGo beginning to face competition after the Indian enterprises AirAsia and Singapore Airlines have started their activities in the past year, having entered the market, where profit is quite vague. Jet Airways India and SpiceJet suffered annual losses, while the airline Kingfisher Airlines Ltd., burdened with a debt of $ 1.4 billion in debt, the flights have been banned since 2012.
Profit
IndiGo in the fiscal year ended March 31, get about a profit of $ 150 million to $ 175 million, according to estimates CAPA Centre for Aviation. The share of the domestic market, the airline is likely to exceed 40% in the current fiscal year, predicts the Indian unit CAPA.
InterGlobe Aviation Ltd., the owner of IndiGo, plans to raise about $ 500 million from the initial public offering, sources said. IPO appreciate Indigo $ 4 billion, six and a half times the market value of its nearest competitor, Jet Airways India, and 18 times more than the cost SpiceJet.
