Low-cost airline IndiGo has placed a firm order for 300 Airbus A-320 New Engine Option (NEO) aircraft.
A statement from the airline said the order comprises a mix of A320 NEO, A321 NEO and A321 XLR or Extra Long Range aircraft. The latest order takes Indigo’s total aircraft order of A320 NEO family aircraft to 730.
The book value of the order is estimated at $30-33 billion, although aircraft manufacturers are known to give huge discounts when bulk orders are placed.
The delivery schedule for these aircraft, or the engines which will be fitted on them, is yet to be firmed up. The airline statement quoted Riyaz Peermohammed, its Chief Aircraft Acquisition and Financing Officer, as saying that the choice of engine manufacturer for this order will be made at a later date.
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The induction of the aircraft, which have a range of up to 4,700 nautical miles, will allow IndiGo to operate from Delhi to London in the North and Tokyo in the East. While the A320 family includes the A318 and A319 apart from A320 and A321 aircraft, IndiGo is picking only the A320 and A321 variety of aircraft. These aircraft will also allow IndiGo to carry more passengers per domestic flight than some others in its existing fleet. The Classic Engine Option Airbus A320 can seat 180 passengers while the NEO A320 can seat 186.
The proposed order comes on the back of IndiGo reporting a loss of ₹1,062 crore for the second quarter ended September. The airline had reported a loss of ₹651 crore in the corresponding period last year and a profit of ₹1,023 crore in the first quarter of the current fiscal.
The IndiGo website shows that the airline currently has a fleet of 247 Airbus aircraft and operates 1,400 daily flights, connecting 60 domestic cities and 23 international destinations.
Traditionally, IndiGo has been operating Airbus aircraft and has been ordering a large number of aircraft in every order. The airline created history when, as a start-up, it ordered 100 A-320 aircraft.
In 2011, IndiGo placed an order for 180 Airbus aircraft at a deal then valued at $15.6 billion. These aircraft are to be delivered to the airline till 2025. In 2015, the airline signed an MoU to purchase 250 Airbus NEO, an order valued at $22.5 billion. The delivery of these aircraft started in 2018 and go on till 2026.