Wednesday, January 12, 2011

IndiGo Airline in a $16 Billion Deal with Airbus

Indian budget airline IndiGo has recently signed an agreement to buy 180 Airbus A320 aircraft, in a record sale worth $16.4 billion (12.6 billion euros). As per the Airbus officials it is one of the largest single firm order number for large jets in commercial aviation history.

The low-cost  airline from India has signed a memorandum of understanding to acquire 150 single-aisle A320neo jets. The neo versions - "new engine option" -- are equipped with more efficient engines and fuel-saving wing tips.

IndiGo is the first client for this new version of the aircraft, which Airbus only unveiled last month and plans to start delivering in early 2016. The other 30 planes are to be standard versions of the A320. The value of the deal was not announced, but according to Airbus' catalogue price the sale is worth $16.4 billion.

The aircraft are expected to deliver fuel savings of up to 15 percent, with corresponding cuts in overall pollution. "Ordering more A320s was the natural choice to meet India's growing flying needs. "The opportunity to reduce costs and to further improve our environmental performance through the A320 were key to our decision," they said in a statement.

Airbus said it has delivered some 4,500 of the aircraft to 310 airlines, with another 1,300 on the order books, making it the world's best-selling single-aisle aircraft family.

The A320neo is Airbus' bid to counter rival aircraft such as Canada's Bombadier CSeries and China's C919, as well as heading off Boeing, which has not yet decided on the future of its medium-haul 737.

Airbus will offer airlines a choice of motors on its A320neo.

They will be able to choose between the latest model from CFM International, a joint venture between France's Safran and General Electric in the United States, and a US Pratt & Whitney engine.

IndiGo had not yet decided what engine it wanted for its models and would make an announcement at a later date, Airbus said.

Source - http://timesofindia.indiatimes.com/business/india-business/Indian-budget-airline-IndiGo-in-16bn-deal-with-Airbus-/articleshow/7264811.cms

No comments: