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IndiGo Eyes At Upgrading Their Fleet: Plans for Long Haul Fleet

Leading Domestic Airline, Indigo on Thursday said it has agreed to place a firm order for 30 Airbus A350-900, along with an option for 70 more of these big birds.

The largest Airline in India by passengers carried and fleet size, Indigo has finalised an order for 30 Airbus A350-900, With this it is going to make its entry into widebody space aircraft which will upgrade its fleet for long-haul global destinations. The Airline has around 60% of domestic market share as of March 2024.

About The Order

Indigo is set to mark its foray into the wide-body segment, The Largest Airline in India announced that they have placed a firm order of 30 A350-900 Aircraft and will also have the option to purchase an additional 70 of such aircraft. These A350-900 would have The Trent XWB engine of Rolls Royce. The configurations for these aircraft are going to be decided later and the delivery for the same is expected to start in 2027.

This move has come up by Indigo at a time when the government is asking airlines to buy wide-body Aircraft that will connect European And American destinations directly with India, as the government wants to reduce dependence on foreign airlines.

Previously in June last year, The Airline made a record order purchase by any airline for 500 aircraft with Airbus, Now it is all set to enter into the wide-body segment. At present, In India only Air India and Vistara operate in the Wide-Body Aircraft segment. With Air India operating A350, the only Indian carrier doing that. Now Indigo would be joining them here.

Current Aircraft Size of Indigo

Indigo Airlines has about 60% domestic market share, At Present they have a fleet of more than 350 narrow-body planes, The outstanding order book for a mix of A320 neo, A321 neo and A321 XLR aircraft stands at almost 1000, they are to be delivered well within the next decade. With this new order of wide-body aircraft, Indigo will be expanding its fleet.

Indigo CEO on this Order

Indigo CEO, Pieter Elbers said this is a historic moment and it marks a new chapter for Indigo ahead, and will further shape the future of the company and also for the Indian Airline Industry, he further added that a “fleet of 30 Airbus A350-900 aircraft will allow IndiGo to embark on its next phase of becoming one of the leading global aviation players.”

Conclusion

Indigo is the current domestic market leader with 60% of the market share, With this new beginning of wide-body aircraft, It is also set to enter into the International markets. The stock of Indigo has been in talks after this news. It is up by +2.5% today and currently trades at Rs.3908 a piece.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.